Vladimir Putin has made a bold declaration in the ongoing global economic power struggle, stating that trade transactions between Russia and China are now “almost completely” conducted in rubles and yuan. This move away from the US dollar is a cornerstone of their joint strategy to build a new financial architecture.
This policy of de-dollarization directly undermines the global hegemony of the US currency, which has long been a source of significant geopolitical leverage for Washington. Putin’s confirmation of this near-total shift signals a new level of commitment to breaking free from the dollar-based system.
The context for this move is a booming trade relationship, which has expanded by approximately $100 billion since 2021. By settling this massive trade volume in their own currencies, Russia and China are creating a large, self-contained economic loop that is insulated from Western sanctions.
As the SCO summit convenes, this successful implementation of a de-dollarization strategy will be presented as a major achievement. It serves as a powerful example for other nations wishing to reduce their dependence on the US dollar and assert greater economic sovereignty.