In a significant development, the yuan has overtaken the dollar as the most widely-used currency for cross-border transactions in China as of March, according to official data. This milestone reflects Beijing's ongoing efforts to boost the international use of the yuan.
Cross-border payments and receipts in yuan reached a new high of $549.9 billion in March, up from $434.5 billion in the previous month, as per Reuters' calculations based on data from the State Administration of Foreign Exchange. The yuan was utilized in 48.4% of all cross-border transactions, while the dollar's share fell to 46.7% from 48.6% a month earlier.
The cross-border transaction volume encompasses both the current and capital accounts. China has been actively encouraging the use of the yuan for cross-border trade settlements in its bid to increase the global usage of its currency.
Although the yuan's role in global trade finance is still limited, it has exhibited consistent growth. SWIFT data revealed that the yuan's share of international currency transactions for trade finance increased to 4.5% in March, while the dollar accounted for 83.71%.
