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The yuan surpassed the US dollar to become the most-used currency in China’s cross-border transactions last month, Reuters reported on Wednesday citing official data.
Cross-border payments and receipts in yuan surged from $434.5 billion in February to a record $549.9 billion in March, according to calculations by the outlet, based on data from the State Administration of Foreign Exchange.
The Chinese currency was used in 48.4% of all cross-border transactions, reflecting a trend of shifting away from the dollar, as well as Beijing’s efforts to promote the use of the yuan.
The share of the greenback in China’s international settlements dropped from 48.6% in February to 46.7% last month.
The volume of cross-border transactions covers both current and capital accounts, the outlet said. Although the share of the yuan in global settlements is still relatively low, it has been steadily on the rise over the past several years.
China’s attempts to move away from the dollar in international trade have sped up against the backdrop of sweeping sanctions imposed by Western nations against Russia, a major global energy producer and exporter.
Indian policymakers have also taken steps towards shifting away from the greenback to rubles and rupees in mutual trade with Moscow.
Russia has been boosting its use of alternative currencies in transactions since last year. President Vladimir Putin has suggested that the Chinese yuan should be used more widely, not only in trade with China, but also in Russia’s transactions with countries in Africa and Latin America.
The latest data from the Bank of Russia shows that the yuan has become a major player in Russia’s foreign trade.