Russia's stock market has undergone significant changes. Now, the yuan is the top currency, replacing the dollar and the euro. According to Business Insider, after US sanctions forced the Moscow Exchange to stop trading dollars and euros, Russia revamped its exchange strategy. Currently, the Russian regulator has adopted the yuan/ruble exchange rate as the benchmark. According to estimates from the Bank of Russia, the Chinese currency now accounts for 54% of transactions in the country.
The authorities have stated that the CNY/RUB pair will now be the primary currency pair. This announcement came after the cessation of trading key currency pairs, USD/RUB and EUR/RUB, on the Moscow Exchange. This caused some confusion due to the lack of transparency in the exchange rate, but the situation has since stabilized.
Some Russian banks have stopped selling dollars, thus allowing the US dollar to skyrocket against the ruble. However, this did not come as a surprise to many. The fact is that the role of the US dollar and the euro in trade settlements has been becoming less significant over the past two years.
In this context, the significance of the Chinese currency has grown substantially. The Central Bank of Russia emphasized that the yuan has become the main currency on the Moscow Exchange. It is expected that trading in the Chinese currency will pave the way for other currency pairs and become a benchmark for many market participants. According to representatives of the Bank of Russia, currencies from so-called "friendly" countries and the ruble now make up to 80% of Russia's foreign trade payments.
