For the first time, Yuan exceeded the US dollar in China's bilateral transactions for the last quarter, Nikkie Asia reported. According to the report, Yuan was used for 49 per cent of bilateral transactions in the last quarter.
Nikkie Asia reported that the Yuan topped the US dollar mainly due to an open capital market and more Yuan-based trade with Russia. According to an analysis by the publication, in the last quarter, Yuan-denominated international payments grew 11 pc on the year to $1.51 trillion, while dollar payments shrank 14 pc to $1.4 trillion. As per data since 2010, this was the first quarter in which the Chinese currency pulled ahead US dollar.
China's opening of its capital markets and a push away from the dollar in trade have been key factors in the shift toward the yuan, the publication reported. According to the report, Russia used Yuan more and made up 39 per cent of the total volume in Russia's foreign exchange market, according to Russian central bank. Russia used Yuan even to settle China's oil purchases. Beijing aims to expand the yuan's role in cross-border payments.
