Yuan's Share in Global Settlements Rises, Closing Gap with British Pound

BIS Survey Released Every Three Years
US Dollar Remains Dominant at 89.2% Share

Thanks to efforts by the Chinese government to internationalize the yuan, the share of the yuan in global foreign exchange transactions has steadily increased.

According to Bloomberg and other sources on October 1, the Bank for International Settlements (BIS) reported in its "Triennial Central Bank Survey" that the share of the yuan in global over-the-counter (OTC) foreign exchange transactions reached 8.5% in April, up from 7.0% in the previous survey year (2022). The yuan ranked fifth among all currencies.

The share of the yuan has consistently risen, from 2.2% in 2013 to 4.0% in 2016 and 4.3% in 2019. The gap between the yuan and the fourth-ranked British pound also narrowed to 1.7 percentage points this year, down from 5.9 percentage points in 2022. During the same period, the average daily value of yuan foreign exchange transactions increased 1.6 times, from 524 billion dollars (about 738 trillion won) in 2022 to 817 billion dollars (about 1,151 trillion won) this year.

The US dollar remained dominant, accounting for 89.2% of all transactions. The dollar's share has continued to rise since the 2013 survey, reaching 88.4% in 2022. The euro, the currency of the European Union, was second at 28.9%, followed by the Japanese yen at 16.8%. The South Korean won ranked 12th with a 1.8% share.

According to the South China Morning Post, Miao Yanliang, chief strategist at China International Capital Corporation (CICC), stated in a report that "the international use of the yuan still does not match China's economic and trade scale." He added, "There are signs that trust in the US dollar is weakening. China should increase the supply of yuan-denominated safe assets and expand the role of the yuan in settlement and commodity pricing to promote its international use."

This BIS survey, conducted every three years, included participation from more than 1,100 banks and dealers across 52 countries worldwide.

This content was produced with the assistance of AI translation services.