Chinese Yuan Surpasses Dollar For The First Time In Cross Border Transactions

The yuan surpassed the dollar as the most regularly used currency for cross-border transactions in China in March, according to government data, indicating Beijing's attempts to internationalise the yuan.

According to Reuters calculations based on statistics from the State Administration of Foreign Exchange, yuan cross-border transfers and receipts reached a record $549.9 billion in March, up from $434.5 billion the previous month.

The yuan was utilised in 48.4% of all cross-border transactions, while the dollar's share fell to 46.7% from 48.6% a month earlier.

Cross-border transactions affect both the current and capital accounts.

As part of its efforts to internationalise the use of its currency, China has long promoted the use of yuan to settle cross-border business.

The yuan's usage in global trade financing remains limited, despite steady growth.

According to SWIFT data, the yuan's share of global currency transactions for trade finance increased to 4.5% in March, while the dollar accounted for 83.7%.