According to official data, the yuan overtook the dollar as the most often used currency for overseas transactions in China in March, a development that reflects Beijing’s attempts to internationalise the usage of the yuan.
Based on data from the State Administration of Foreign Exchange, it is calculated that cross-border payments and receipts in yuan increased to a record $549.9 billion in March from $434.5 billion a month earlier.
The yuan accounted for 48.4% of all cross-border transactions, while the dollar’s percentage dropped to 46.7% from 48.6% a month earlier.
Both the current and capital accounts are covered by the volume of cross-border transactions.
In an effort to internationalise 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% of all international currency transactions for trade financing in March, while the yuan’s proportion increased to 4.5%.
