Yuan surpasses the dollar in Chinese cross-border payments

Beijing’s overseas settlements used 48.4% Chinese money, according to data.

Reuters said the yuan overtook the US dollar as China’s cross-border currency last month.

Based on State Administration of Foreign Exchange data, the outlet calculated that cross-border yuan payments and receipts rose from $434.5 billion in February to a record $549.9 billion in March.

48.4% of cross-border transactions used the yuan, suggesting a shift from the dollar and Beijing’s currency promotion. Last month, China’s overseas settlements were 46.7% dollars, down from 48.6% in February.

Moving Markets

The outlet reported cross-border capital and current account activities. The yuan’s proportion of global settlements is still low but has been rising gradually for years.

Western sanctions against Russia, a key energy exporter, have accelerated China’s efforts to diversify away from the dollar in international trade. Indian officials have likewise moved towards trading with Moscow with rubles and rupees instead of dollars.

Russia began using alternative currencies in transactions last year. President Vladimir Putin has proposed using the Chinese yuan more in trade with China, Africa, and Latin America. According to Bank of Russia data, Russia’s overseas trade now heavily involves the yuan.

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