On the Question of International Currency, Internationalization of the Yuan, and Settlements in National Currencies

Abstract

ABSTRACT The subject of this article is currencies for international settlements. The world has seen the emergence of demand for alternatives to the dollar and euro. However, minimal transaction cost remains the main property of a vehicle currency, and China’s ambition to internationalize the yuan is reevaluated in this context. Moreover, yuan settlements primarily handle China’s payments for imports in its national currency. Russia is one of the countries for which the currency is underutilized in its own foreign trade payments. The risks emerging from geopolitical conflicts and Russia’s integrating role in the Eurasian region will facilitate an increase in ruble settlements. It is in the national interest to create a SWIFT-independent system of internal interbank transfers in foreign currencies and to finish the transition to cross-border settlements in rubles within the Eurasian Economic Union in particular.