Yuan gains from Russian sanctions – tycoon : Analysis

According to Russian businessman Oleg Deripaska, the share of Chinese yuan in global payments has nearly doubled due to the sanctions imposed by the US and the EU. Deripaska cited a report from the Financial Times that showed global settlements conducted in the Chinese currency had increased from 1.9% in January 2023 to 3.6% in October. He sarcastically commented that the success of European and American sanctions policies is highlighted by the doubling of transactions made in Chinese yuan over the past year. Deripaska also predicted that cross-border trade payments in Chinese yuan would exceed those made in euro within four years. The Financial Times report mentioned that China’s efforts to reduce reliance on the US dollar and other G7 currencies have become essential due to sanctions against Russia and tensions with the US over Taiwan. In September, the yuan surpassed the euro as the second-most used currency in global transactions. Since the imposition of sanctions in 2022, Russia and its trading partners among developing nations have been working to reduce dependence on Western financial systems and replace the US dollar and euro with national currencies like the yuan.

Overall, the source credibility of this article is questionable. It is published by RT, a state-funded media outlet known for promoting the Russian government’s perspectives. This may introduce a bias in the reporting. Additionally, the article does not provide any additional sources or perspectives to support the claims made by Oleg Deripaska.

While the article presents factual information about the increase in the share of Chinese yuan in global payments and the reasons behind it, there is no independent verification of these claims. Additionally, the article lacks analysis from other experts or perspectives, which limits a nuanced understanding of the situation.

The impact of this article is unclear. It may contribute to a narrative that portrays Western restrictions and sanctions as ineffective or counterproductive, while highlighting the success of Chinese currency in global transactions. However, without further evidence or expert analysis, it is difficult to determine the reliability of the claims made by Deripaska and the overall impact of the article.

This article highlights the prevalent issue of misinformation and biased reporting in the political landscape. State-funded media outlets like RT have been known to promote certain narratives and perspectives that align with their respective governments. It is important for readers to critically evaluate the credibility of sources and seek multiple perspectives to gain a more accurate understanding of complex issues. The prevalence of fake news and biased reporting can contribute to public confusion and misperceptions, affecting public perception of geopolitical events and policies.

Source: RT news: Yuan benefiting from sanctions on Russia – tycoon