Toxic currencies are good for the yuan

For the first time in recent Russian history, the Chinese yuan has surpassed the US dollar in volume. The dollar was king in 1991 when the Soviet Union collapsed, but that is no longer the case after Moscow branded the dollar a “poisonous currency” along with the euro. Toxic currencies accounted for 87% of exports from Russia in early 2022, but by the start of the new year, that figure had dropped to 48%. Bank of Russia reported that the share of the dollar/ruble currency pair fell to just 36% in February. The central bank calls it “a broad structural transformation of the Russian economy.”

When “unfriendly countries” and their “toxic currency” unite, those on the fringes win. China has emerged as a hotbed for new trade partnerships as it skirts Western-imposed sanctions. Toxic currencies accounted for 46% of imports in December 2022, but in January 2022 before the war, they accounted for 65%. On the contrary, the share of the yuan rose from 4% to 23% during this time.

Those who were previously avoided a chair is being pulled out from behind the big table to discuss economic prospects with China. This will make it much easier to phase out toxic currencies because more people are willing to accept the yuan. confidence in yuan is growing. Everything that happens may seem strange, but it is right on target. As I mentioned in my report “China on the Rise” By 2032, China will overthrow the United States and become the world’s leading economic power. It’s just time.