According to official data, the yuan surpassed the dollar as the most common currency used for overseas transactions in China in March. This development reflects Beijing’s attempts to internationalize the yuan’s use.
According to Reuters calculations based on statistics from the State Administration of Foreign Exchange, cross-border payments and receipts in yuan increased to a record US$549.9 billion in March from US$434.5 billion a month earlier.
According to Reuters, the yuan accounted for 48.4% of all cross-border transactions, while the dollar’s percentage dropped from 48.6% a month earlier to 46.7%.
Both the current and capital accounts are covered by the volume of cross-border transactions.
In an effort to internationalize the usage of its currency, China has long promoted the use of the yuan to settle cross-border business.
Despite steady advances, the yuan’s use in international trade finance is still minimal.
According to SWIFT data, the dollar accounted for 83.71 percent of all international currency transactions for trade financing in March, while the yuan’s proportion increased to 4.5%.
