CHINA's use of the yuan in cross-border transactions has reached record highs this year, as closer ties with Russia bolster Beijing's efforts to internationalise its currency and cut dependence on the US dollar, reports London's Financial Times.
In July, 53 per cent of China's inbound and outbound transactions used the Chinese currency, according to data from the State Administration of Foreign Exchange (SAFE), up from about 40 per cent for the same month in 2021.
The SAFE data shows cross-border transfers by banks on behalf of non-banking clients and mainly represents trade settlements, although it also captures investment flows and debt payments.
Cross-border use of China's currency received a boost after US sanctions limited Russia's ability to transact in dollars following its invasion of Ukraine. In February of this year, Russia's central bank governor Elvira Nabiullina said use of the Chinese currency for settlements, financial transactions and deposits had 'surged.'
SeaNews Turkey
In July, 53 per cent of China's inbound and outbound transactions used the Chinese currency, according to data from the State Administration of Foreign Exchange (SAFE), up from about 40 per cent for the same month in 2021.
The SAFE data shows cross-border transfers by banks on behalf of non-banking clients and mainly represents trade settlements, although it also captures investment flows and debt payments.
Cross-border use of China's currency received a boost after US sanctions limited Russia's ability to transact in dollars following its invasion of Ukraine. In February of this year, Russia's central bank governor Elvira Nabiullina said use of the Chinese currency for settlements, financial transactions and deposits had 'surged.'
SeaNews Turkey
