The People's Bank of China (PBOC) said in a report that cross-border payments and collections in Chinese renminbi (yuan) expanded 24 percent year-on-year to 38.9 trillion yuan ($5.42 trillion) in the first nine months of this year, which had a better impact on serving the real economy.
The report, quoted by the Chinese news agency Xinhua, said cross-border merchandise trade settled in yuan accounted for 24.4 percent of total local currency and foreign currency settlements, up 7 percentage points year-on-year, the highest level recorded in recent years.
The yuan continues to improve its role as a financing currency, he said, adding that policies have been introduced regarding practices such as overseas lending by domestic banks and domestic bond issuance by offshore institutions.
The report also showed that the investment and financing environment through the yuan is improving, and that trading in the offshore yuan markets has become more active.
He pointed out that the balance of deposits in yuan in major foreign markets reached about 1.5 trillion yuan at the end of 2022, returning to a historic high, according to the Qatar News Agency.
He noted that the central bank will facilitate trade and investment, improve systems and infrastructure related to investment, finance and settlement of cross-border transactions, and support the healthy development of offshore yuan markets.
Chinese yuan expansion
Official data from China's National Foreign Exchange Authority showed the country's international trade (goods and services) reached 4.25 trillion yuan ($591.4 billion) in September.
Other official data showed China's foreign exchange market hit 19.12 trillion yuan ($2.66 trillion) in September, up from 192.9 trillion yuan in the first nine months of this year.
The yuan's global share rose from 2.29% in April to 2.54% in May, with the Chinese currency remaining the fifth most active.
China's GDP is expected to grow by 5.2 percent this year and 5 percent in 2024, according to a report released at the International Financial Forum held Saturday in Guangzhou, southern China.
Several countries, including Argentina, Brazil, Saudi Arabia and India, have used the Chinese yuan in their dealings, including with the International Monetary Fund, instead of the dollar.
The Chinese yuan ranks fourth in the world in international trading, after the dollar, the euro and the Japanese yen.
In 2016, China succeeded - through negotiations with the International Monetary Fund - in making its local currency, the yuan, one of the international currencies that can be one of the components of foreign exchange reserves for countries.
The dollar still holds 41% of the world's foreign-exchange reserves, accounts for 60% of global payment currencies, and has a share of 60% of international debt and 52% of international loan payments.