Yuanization of the Russian economy: Politicization of the discourse

TERRA ECONOMICUS, , Vol. 21 (no. 4),

The geopolitical upheavals of 2022 have made Russiaʼs economic turn to the East inevitable. Statistics 2022–2023 testifies: Russia began to play an important role in the process of internationalization of the yuan. If previously the yuan entered the international payment’s structure “Crossing the river by touching the stones”, then Russia shows an explosive displacement of the American dollar by other currencies, primarily the yuan. In the socio-political discourse, one can find both the concerns of domestic authors regarding the excessive growth of Russia’s dependence on its eastern neighbor, as well as the Western authors comments characterizing the problem in terms of vassal dependence. Politization of the problem obviously shifts the emphasis from the economic side towards the discussions about the national sovereignty risks. Regarding the use of the yuan in the Russian financial market, this is manifested in the term «yuanization» in the socio-political discourse. Appearing in journalisms, it involuntarily causes cognitive distortions regarding the described reality, since it implies a process of dominance of foreign currency in the country’s financial system, mirroring the previous phenomenon of dollarization. The “yuanization” discourse contradicts both the public position built by the Russian authorities. We assume that the emerging discourses and narratives have a direct impact on the formation and functioning of financial institutions, and we show the inconsistency of todayʼs discourse, which probably shapes the inconsistency of prospects for the development of the Russian financial system.
Citation: Volynskiy A., Kruglova M., Nikitina S., Slavinskaya O. (2023). Yuanization of the Russian economy: Politicization of the discourse. Terra Economicus 21(4), 69–79 (in Russian). DOI: 10.18522/2073-6606-2023-21-4-69-79

Keywords: yuan; de-dollarization; yuanization; world trade; finance

JEL codes: F30, F36, F02

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606