China and Russia once again hit the US dollar. The countries have reduced the share of the dollar-denominated transactions. Such a decision was mainly caused by the ongoing trade war between Beijing and Washington that began in 2014. Moreover, Russia is still sticking to its de-dollarization policy.
Thus, after a several-year fight with the US dollar domination, China and Russia managed to reduce the dollar share in the transactions between each other.
The US dollar share has tumbled to 46% from 75% in 2018. The rest 54% of non-dollar trade is made up of the Chinese yuan (17%), the euro (30%), and the Russian ruble (7 %). In other words, it could be extremely difficult to get rid of the US national currency.
The fact is that the Russian economy is commodity-based and it highly depends on exports. Moreover, other countries are not planning to move away from the dollar. That is why Russia will have to use dollars for international trade.
