Putin Calls The US Dollar A ‘Statistical Discrepancy’ In Its Trade With China

• Russian Federation President Vladimir Putin said their country and China are forging stronger trade links to lessen their dependency on the US dollar for cross-border trades.
• He claimed their progress reduces the US dollar and euro’s share to a “statistical discrepancy.”

###Russia and China’s Bilateral Trade Relations

According to President Vladimir Putin’s interview with Xinhua News, the economic relationship between Russia and China has grown at an “unprecedented” level since 2021. He stated that their bilateral trade transactions have reached around $100 billion.

In terms of volume, China is now Russia’s top trading partner. Meanwhile, Russia is China’s fifth-largest cross-border trade partner. Russia greatly benefits from China’s agricultural and food products, while the latter imports most of its oil and gas from the former.

Despite his figures being stated in US dollars, Putin noted that trade between the neighboring nations is denominated in their respective currencies, the ruble and the yuan. Their currencies account for 90% of their trade settlements. He pointed out that the US dollar and euro’s share in their market has significantly diminished into a “statistical discrepancy.”

ADVERTISEMENTThe event underscores the growing trend of de-dollarization among BRICS+ nations. The group, initially comprising Brazil, Russia, India, China, and South Africa, has expanded its membership to include Saudi Arabia, Egypt, the United Arab Emirates (UAE), Ethiopia, Indonesia, and Iran.

The Chinese news outlet conducted Putin’s interview on the eve of his visit to China for the Shanghai Cooperation Organization (SCO) Tianjin Summit and China’s V-Day commemorations in Beijing.

###US Stablecoins to Counter De-Dollarization Threat

US President Donald Trump and lawmakers have long sounded off the alarm on the move of BRICS+ to undermine the US dollar. As an effort to ensure the dominance of the US dollar in foreign exchange and global trades, the current administration has ramped up its digital asset policy with a focus on balancing regulations and innovations in USD stablecoins.

ADVERTISEMENTThe establishment of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act was central to Trump’s goal of maintaining the positioning of the US dollar in the world market and bolstering the demand for US treasuries. The administration believes that by leveraging the speed, security, and borderless nature of blockchain technology, these digital assets can make the US dollar more efficient and appealing for both retail and institutional transactions.

Overall, the approach aims to ensure that the dollar remains the default medium for global commerce and a preferred vehicle for holding US Treasury assets.

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