Share of foreign trade payments from China to Russia in euros up 54-fold, in U.S. dollars down 50% in Q1
MOSCOW. July 26 (Interfax) - The share of foreign trade payments from China to Russia made in euros amounted to 37.6% in the first quarter of 2019, up by 54 times from just 0.7% in the same period of 2018, data published by the Central Bank of Russia show.
The share of Chinese payments in euros for Russian goods and services delivered under foreign trade contracts grew from 0.7% in the first quarter of 2018 to 1.3% in the second quarter, 16.1% in the third quarter and 30.4% in the fourth quarter.
As a result, the share of foreign trade earnings for exports to China in euros grew to 12.0% in 2018 from 3.3% in 2017, 4.2% in 2016, 2.2% in 2015, 0.8% in 2014 and 0.9% in 2013.
The share of Chinese payments in Russian rubles increased by 40% to 9.6% in the first quarter of 2019 from 6.8% in the same period a year earlier, and the share in other currencies (clearly yuan) grew by 50% to 7.1% from 4.7%.
Meanwhile, the importance of the U.S. dollar as a settlement currency declined, with its share of Chinese payments for Russian goods and services shrinking to 45.7% in the first quarter of 2019 from 54.5% in the previous quarter, 79.2% in the third quarter of 2018, 87.4% in the second quarter and 87.8% in the first quarter of 2018. The share paid in U.S. dollars shrank to 79.2% in 2017 from 83.3% in 2016 and 97.1% in 2014.
This means that the U.S. dollar now accounts for less than half of Russia's foreign trade earnings on transactions with Chinese partners.
In trade with India, the Russian ruble has taken over the role of the U.S. dollar. The share of ruble payments by Indian partners grew to 75.1% in the first quarter of 2019 from 53.2% in the previous quarter, 21.3% in the first quarter of 2018 and just 3.0% and 1.1% in 2014 and 2013, respectively.
The share of payments in U.S. dollars, meanwhile, shrank from 96.6% in 2013 to 80.1% in 2016, to 76.7%, 59.0%, 48.6% and 41.9%, respectively, in the first, second, third and fourth quarters of 2018, and to 19.9% in the first quarter of 2019.
These changes had an impact on the currency structure of earnings on trade with BRICS countries. The share of payments in rubles from partners in these countries grew to 23.1% in the first quarter of 2019 from 8.9% in the first quarter of 2018, the share in euros grew to 30.7% from 1.0% and the share in other currencies rose to 5.6% from 4.0%, while the share in U.S. dollars shrank to 40.6% from 86.1%.
The share of payments in euros on contracts with European Union countries grew to 42.3% in the first quarter of 2019 from 32.0% in the first quarter of 2018. The share of earnings in U.S. dollars, meanwhile, shrank to 46.6% from 57.2%, respectively, and from 73.0% in 2013.
Overall, in trade with all countries, the share of dollar payments in Russian foreign trade earnings shrank to 61.7% in the first quarter of 2019 from 70.8% a year earlier, while the share in euros grew to 21.9% from 14.8%, the share in Russian rubles rose to 14.1% from 13.2% and the share in other currencies increased to 2.3% from 1.2%.
The change in the currency structure of Russian earnings on foreign trade contracts also corresponds to changes in the structure of Russia's international reserves. It was reported earlier that the share of assets denominated in U.S. dollars in the countries international reserves shrank from 45.8% to 22.7% in 2018, while the share in euros grew from 21.7% to 31.7%, the share in yuan jumped from 2.8% to 14.2% and the share in other currencies increased from 12.5% to 13.3%.