For the first time, the Yuan surpasses the Dollar in financial transactions with China

The yuan is struggling in the foreign exchange market where it presents itself as a not particularly strong currency, but, despite this, it continues to increase its market share in Chinese cross-border transactions as the number one payment currency. 1. Here is its price, in which it reached 7.3 Yuan for one dollar

This reflects the progress of the yuan's internationalization in trade, as well as the growing influence of foreign capital flows into China's financial markets.

Official data on Friday showed the Yuan's share of Chinese cross-border payments and receipts rose to a record 54% last month, compared to the dollar's 41%. So China now trades more in Yuan than in Dollars

The data includes transactions of goods and services, as well as cross-border investments.

As foreign investors trade Chinese stocks and bonds in yuan, the continuous opening of the capital market over the years has increased the yuan's market share in total transactions.

In August, for example, foreign investors sold a record amount of Chinese stocks, which is expected to inflate the yuan's share of total cross-border transactions. This partially explains this growth.

However, the advance of the Yuan, for now, concerns almost exclusively Chinese transactions, because outside of this area there is still a long way to go for the Chinese currency.

The latest SWIFT data shows the yuan's share in global payments rose to 3.1% in July, from 2.8% in June. It was dwarfed by the dollar's 46% share and the euro's 24% share.

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The article For the first time the Yuan surpasses the Dollar in financial transactions with China comes from Economic Scenarios .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/per-la-prima-volta-lo-yuan-supera-il-dollaro-nelle-transazioni-finanziarie-con-la-cina/ on Wed, 20 Sep 2023 10:41:44 +0000.