Yuan Becomes Most-Used Currency in Cross-Border Transactions

  • Its use in cross-border payments and receipts increased to 48% versus 47% for the dollar.
  • In 2010, the yuan’s share was nearly 0% while the dollar’s was 83%. The reversal comes amid China’s efforts to empower the yuan

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

  • The yuan has continued to make inroads, especially since Western sanctions that froze Russia’s foreign exchange reserves highlighted the potential risk of holding dollars.
  • Over the last few months, China has entered into non-dollar trade agreements with countries such as Brazil.

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