Russia is accelerating its efforts to move away from using the US dollar and is considering using currencies from ASEAN countries for settlement
Russia is exploring the possibility of settling trade with ASEAN countries using their local currencies. This move is aimed at enhancing the bilateral trade between the countries and comes amidst the Western sanctions against Russia over the Ukraine crisis. Similar efforts are being made by other emerging economies such as India, China, and ASEAN to use local currencies to settle trade. According to experts, this trend is favourable for China's foreign trade and will help in the internationalization of the yuan. Russian Foreign Minister Sergey Lavrov suggested the idea of using national currencies in mutual settlements while attending the ASEAN Regional Forum in Indonesia. This effort is a part of Russia's de-dollarization effort, which experts believe is beneficial for ASEAN, Russia, and other countries. Despite the US-led sanctions and baseless accusations, China and Russia aim to increase bilateral trade to $200 billion by the end of 2023.
According to Shu Jueting, a spokesperson for the Chinese Commerce Ministry, bilateral trade activities are on the rise. The 7th China-Russia Expo, which took place in Yekaterinburg, Russia from July 11 to 13, saw more than 300 Chinese enterprises in attendance, making it the largest scale event so far. During the expo, Chinese and Russian enterprises discussed cooperation in various areas such as energy, agriculture, forestry, industry, transportation, and culture. Shu also emphasized that the US cannot hinder normal cooperation among countries that benefits their people. Attempting to do so will only harm its own interests. Several countries have started using the yuan for trade, such as Indian refiners who are paying for some oil imports from Russia using it. Argentina has also begun using the yuan to settle part of its debt with the IMF for the first time on June 30 in Latin America.