China pushes Yuan globalization amid rising trade tensions
|China is intensifying efforts to promote the yuan in global trade by enhancing cross-border financial services, responding to escalating trade disputes and protectionism.
China's central bank has introduced a plan urging state-owned enterprises to prioritize the yuan for international payments and settlements. This initiative aims to strengthen the yuan's role in global commerce, especially as trade tensions escalate due to new U.S. tariffs.Reuters+1Reuters+1Reuters
Lu Lei, Deputy Governor of the People's Bank of China, highlighted that increasing protectionism and tariff barriers are disrupting global supply chains. He emphasized that improving cross-border financial services is crucial for boosting the yuan's usage in trade and investment.
In March, the yuan accounted for 4.13% of global payments, ranking as the fourth most active currency. Additionally, China's foreign exchange regulator reported a record $724.9 billion in cross-border yuan transactions last month, representing 54.3% of the country's total international dealings.
President Xi Jinping's recent visits to Southeast Asian nations further underscore China's commitment to expanding the yuan's international presence and countering unilateral trade measures.
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