Trends and prospects of national currencies in international settlements with the participation of Russia and China

Abstract

Today, world currencies reserves occupy an important place in the structure of international settlements, and, despite the continued dominance of the US dollar and the euro, due to their high liquidity and investment attractiveness, under the influence of the processes of globalization, integration, regionalization and digitalization, there is a tendency to gradually move away from the use of world reserve currencies and the expansion of the use of national currencies of countries in international settlements. The authors analyze dynamics of changes in the currency structure of international settlements; identify and list trends in the use of world reserve currencies, the Russian ruble, and the Chinese yuan, in international settlements and, in particular, in trade between Russia and China for the period from 2013 to 2021. They consider strategic importance of foreign trade relations between Russia and China is noted, and the existing prospects for expanding the use of the ruble and the yuan in settlements between Russia and China, as well as factors preventing this. The authors have found that, in order to effectively switch to the use of national currencies of Russia and China in mutual settlements, it is necessary to develop and implement projects and regional trade agreements that facilitate the organization of direct settlements in national currencies, develop exchange, banking and payment infrastructure together with the identification and elimination of regulatory obstacles in the use of currencies. The authors draw conclusions about the expediency and prospects of increasing the share of the ruble and the yuan in foreign trade settlements in the context of the current geopolitical situation, foreign economic pressure from the United States, imposed and current sanctions, as well as the policy of dedollarization.