Yuan Overtakes Dollar for China's Cross-Border Transactions
According to the data from the State Administration of Foreign Exchange, for the first time in March 2023, the yuan surpassed the dollar as the most utilized currency in China's cross-border transactions, marking a significant achievement in the country's efforts to reduce its dependence on the dollar.
The yuan's share of cross-border payments and receipts in China reached a record high of 48 per cent at the end of March while the dollar’s share declined to 47 per cent over the same period.
The growing share of the yuan in cross-border transactions enables local firms to minimize currency mismatch risks.
China is planning to expand yuan settlement in cross-border transactions as part of its efforts to boost foreign trade.