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In 2023, the renminbi surpassed the dollar for the first time in trading volume on the Moscow Exchange, marking a historic moment in the rise of the yuan. Behind this change is the gradual and complete departure of Russia from the dollar and the euro in favor of the yuan in an all-round way. Especially in the energy sector, Russia, through cooperation with China, has achieved an economic turnaround, surpassing Germany to become the largest economy in Europe.
Naturally, what new miracles will China and Russia bring to the global economy this time? Through the observation of monthly trading volume, we can find that long before that, China's trading volume has surpassed the euro and even the dollar many times. However, 2023 is destined to be different. Throughout 2023, the share of the renminbi on Russian exchanges reached 42%, and the total volume for the year reached 3415 trillion rubles. At the same time, the dollar's trading volume continued to shrink, accounting for less than 40% of the year's total, and finally gave up the number one position of the year.
In 2023, the trading volume of the yuan has grown significantly, almost tripling. Compared to the total trading volume in 2022, the trading volume in 2023 increased by 1025 trillion rubles quickly ** to 3415 trillion rubles. This growth momentum is staggering, and it shows that the rise of the renminbi is unstoppable. At the same time, the share of the US dollar and the euro in foreign exchange trading on the Moscow Exchange has also shrunk significantly due to Russia's gradual abandonment of settlements in US dollars and euros**. In 2022, the combined trading share of the US dollar and the euro reached 87%, but in 2023, the share of the US dollar is less than 40%, and the share of the euro is less than 18%, both of which have fallen off a cliff**.
Russia's economic reversal is closely related to its complete abandonment of the use of the dollar and the euro. After the outbreak of the Russia-Ukraine conflict, the United States pushed Russian banks out of the SWIFT system, and the Russian currency, the ruble, was no longer used in the system for transaction settlement. The United States may have thought that such financial sanctions would make it difficult for Russia, but Russia has completely broken this self-confidence.
Russia has not only abandoned the use of the dollar, but also gradually abandoned the use of Western currencies such as the euro and the yen, choosing to use only the ruble and other third-country currencies. However, this did not have much of an impact on Russian energy**. In particular, between China and Russia**, the total amount has exceeded $210 billion, but the payment is not made in the US dollar, but mainly in the yuan and rubles. Russia has even gone so far as to demand that India no longer pay rupees but yuan when importing Russian **. Such a choice has ushered in huge opportunities for Russia's economic development.
The choice of a complete reversal towards the renminbi has allowed Russia to achieve an economic reversal. In 2023, Russia's GDP growth rate will actually appear 35% by a large margin**. Russia's Putin pointed out at the meeting that in terms of purchasing power parity, the largest economy in Europe is no longer Germany, but Russia. Germany, which has always followed the United States closely behind and is considered a European economic power, was easily overtaken by Russia at this moment.
Behind the rise of the renminbi is the support of China's steady economic growth. As the world's second largest economy, China's position in the global ** is rising. Russia's choice to completely switch to the renminbi will undoubtedly further strengthen the economic cooperation between the two countries, and at the same time promote the internationalization of the renminbi.
However, the renminbi faces a series of challenges on the international stage. First of all, international investors' trust in the renminbi still needs to be improved. Although the renminbi has become the third largest currency in the world, its share of international payments and its share of reserve currency is still low. In addition, the issue of the RMB exchange rate also needs attention, and how to maintain the stability of the exchange rate is an important issue.
Overall, the renminbi's overtaking of the U.S. dollar is not only a symbol of China's economic rise, but also an important change in the global economic landscape. Russia's choice provides new opportunities for the development of the RMB, and the internationalization of the RMB will bring more opportunities and challenges to China, Russia and the world. Over time, the renminbi is expected to play a more important role in the international financial arena.
The fact that the renminbi overtook the dollar in trading volume on the Moscow Exchange has attracted global attention. Behind this incident is the story of Russia's complete abandonment of the dollar and euro in favor of the yuan and the economic reversal. Russia's choice has not only changed its economic status, but also promoted the internationalization of the renminbi.
The rise of the renminbi has had a significant impact on the world economic landscape. However, the renminbi still faces a series of challenges in the international arena, such as improving the trust of international investors in the renminbi and maintaining the stability of the exchange rate. With future development, the RMB is expected to play a more important role in promoting the prosperity and development of the global economy.
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