Ella Overseas use of the Chinese yuan grew significantly last year due to its pivotal role in global supply chains and continuous high-quality economic development, according to a new study.
The yuan internationalisation index, which aims to track how the Chinese currency performs globally, showed year-on-year growth of 22.9 per cent in 2023, according to a report released by Renmin University on Saturday.
The global use of China’s yuan has seen a significant increase, surpassing both the British pound and Japanese yen on the internationalization index. This notable rise reflects the growing integration of the yuan into global financial markets.
Recent data indicates that the yuan’s share in global trade and finance has risen sharply, signaling its expanding role in international transactions. The increase is attributed to China’s continued economic influence and the yuan’s inclusion in various international financial frameworks.
The yuan’s ascent is driven by several factors, including China’s robust economic performance, its strategic financial reforms, and its growing presence in global trade. As a result, the yuan has increasingly become a preferred currency for cross-border transactions, challenging traditional dominant currencies like the pound and yen.
The shift highlights a broader trend of the yuan’s internationalization, aligning with China’s ambitions to establish its currency as a significant player in the global financial system. The development underscores the changing dynamics in international finance and the rising prominence of the yuan on the world stage.
