Yuan overtakes dollar to become most-used currency in China’s cross-border transactions

Cross-border payments and receipts in yuan rose to a record $549.9 billion in March from $434.5 billion a month earlier, according to Reuters calculation based on data from the State Administration of Foreign Exchange.

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

The volume of cross-border transactions covers both the current and capital accounts.

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’s use in global trade finance remains low, though 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, while the dollar accounted for 83.71%.