Yuan Surpasses Dollar in China’s Cross-Border Transactions

Yuan, in March, became China’s most widely-used currency for cross-border transactions.

iexclusivenews reports that this is the first time it has overtaken the dollar. This reflects Beijing’s efforts to internationalize the yuan.

Yuan’s Share of Cross-Border Transactions Increases

Cross-border payments and receipts in yuan rose to a record $549.9 billion in March. This is up from $434.5 billion a month earlier. The data comes from the State Administration of Foreign Exchange.

The yuan was used in 48.4% of all cross-border transactions. The dollar’s share declined to 46.7% from 48.6% a month earlier.

China Promotes Use of Yuan in Cross-Border Trades

China has long been promoting the use of yuan to settle cross-border trades. This is part of an effort to internationalize its currency.

Yuan’s Share of Global Trade Finance Increases

The yuan’s use in global trade finance remains low, but it has shown steady increases.

Data from SWIFT showed that the yuan’s share of global currency transactions for trade finance rose to 4.5% in March. The dollar accounted for 83.71%.