Why the renminbi is favored in Russia.
Recently, there was a piece of news that attracted a lot of attention: for the first time, the yuan surpassed the dollar on the Moscow Exchange in Russia and became the most traded foreign currency. This is a historic breakthrough and a phenomenon worth pondering. Why can the renminbi be so recognized and welcomed in a country like Russia, a traditional ally of the hegemony of the dollar?What are the internal reasons and external influences behind this?How should we view the process and prospects of the internationalization of the RMB?
First of all, we have to admit the fact that the yuan is a spare tire for the dollar. This is not to say that the renminbi does not have its own value and advantages, but that in the current international monetary system, the US dollar still dominates and is the preferred currency for global ** and investment. However, the U.S. dollar also has its own weaknesses and risks, such as U.S. monetary policy, economic fluctuations, diplomatic conflicts, etc., which will affect the stability and credibility of the U.S. dollar. When the dollar is in crisis, the renminbi becomes a reliable alternative, providing a safe haven for the global economy.
Second, we must be clear about a truth: the internationalization of the renminbi is an objective trend. This is based on the strong growth of China's economy and the growing international influence. China is the world's second largest economy and the world's largest largest country and manufacturing country. China's technology, products, services, and markets are indispensable partners and demanders of countries around the world. Whether it's electric blankets, new energy vehicles, mobile phones, drones, clothes, shoes, or 5G communication equipment, as long as you live in this world, you can't do without China's "four leaders". Therefore, as the representative of China's economy, the renminbi will inevitably be valued and welcomed by all countries around the world.
Again, we have to understand a phenomenon: the rise of the yuan in Russia is a special case. This is related to Russia's own policy choices and external sanctions pressure. Russia has been seeking to reduce its dependence on the dollar and the euro and improve the international status of its own currency, the ruble. To this end, Russia has accelerated the process of "de-dollarization", emptying all the dollars and euros in the national wealth**, leaving only **, rubles and yuan. At the same time, Russia is also strengthening economic and trade cooperation with China and increasing the proportion of RMB used in bilateral settlements. On the other hand, the sanctions imposed by Western countries on Russia also have a counterproductive effect. Since the United States kicked Russia out of the SWIFT settlement system, Russia has to find other settlement methods, and the yuan has become a good choice. As a result, the popularity of the yuan in Russia is growing, not only at the national level, but also at the corporate and personal levels.
Finally, we must maintain an attitude: the internationalization of the renminbi is a long-term process, and we cannot be blindly optimistic or complacent. Although the renminbi has made certain achievements in Russia, there is still a lot of room for improvement in the internationalization level of the renminbi in the world. The inertia and hegemony of the US dollar still exist, and it will take more time and effort for the RMB to truly become the world's main reserve currency. At the same time, we should also realize that the internationalization of the renminbi is not a simple matter, it involves international political, economic, financial and other factors, and will also face various challenges and resistance. We must have a clear understanding, scientific planning, steady pace, firm confidence, and the spirit of cooperation, so as to promote the internationalization of the renminbi to a higher level.