The yuan became the most used currency for cross-border transactions in China in March, surpassing the dollar for the first time, official data showed, reflecting Beijing’s efforts to internationalize the use of the yuan.
Cross-border payments and receipts in yuan rose to a record $549.9 billion in March from $434.5 billion in the previous month, according to Reuters calculations based on data from the State Administration of Foreign Exchange.
The yuan was used in 48.4 percent of all cross-border transactions in March, Reuters estimated, while the dollar’s share fell to 46.7 percent from 48.6 percent the previous month.
The volume of cross-border transactions covers both current and capital accounts.
China has long promoted the use of the yuan for cross-border transactions as part of efforts to internationalize the use of its currency.
But the use of the yuan to finance global trade remains low, although it has been growing recently.
Data from global payments system SWIFT showed the yuan’s share of global foreign exchange trade financing transactions rose to 4.5 percent in March, while the dollar’s share was 83.71 percent. (Source: Agerpres / Photo: Dreamstime.com)
Source: Hot News
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