I just learned some pretty interesting information about how China and Russia are revolutionizing their trade exchanges. It turns out that 99.1% of their border transactions are now fully conducted in yuan and ruble, leaving the U.S. dollar behind. This is not a minor change, honestly.

Russian Deputy Prime Minister Alexander Novak publicly revealed this, presenting it as part of a larger movement within the BRICS alliance to strengthen the use of local currencies. The interesting part is that this figure has been gradually increasing, from 99% not long ago to 99.1% more recently, and all signs point to it continuing to grow.

What really catches attention is that this is not just between China and Russia. Other developing countries are also participating in this trend of reducing dependence on the dollar. China is conducting transactions without dollars with multiple nations, including loan payments and infrastructure projects under the Belt and Road Initiative.

This de-dollarization strategy has accelerated especially since 2022, when Western sanctions began to pressure these countries. What you see is a gradual reordering of the global financial system, where Russia’s and China’s currencies are gaining increasing relevance in trade among emerging economies. It’s a movement that we will likely see intensify in the coming years, especially as more countries seek alternatives to the dollar in their international transactions.