The Dollar Falls Behind the Yuan for the First Time in Chinese Cross-Border Transactions

• The Dollar Falls Behind the Yuan for the First Time in Chinese Cross-Border Transactions
  by fdemott@insider.com (Filip De Mott), www.msn.com
  * The yuan overtook the dollar as the most used currency for Chinese cross-border transactions.
  * Its use in cross-border payments and receipts increased to 48% versus 47% for the dollar.
  * China is pursuing further use of the yuan to avoid currency mismatches in trade.
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  For the first time ever, the yuan has eclipsed the US dollar as the most used currency for Chinese cross-border transactions. The yuan’s use in cross-border payments and receipts rose to 48.4% at the end of March while the dollar’s share slid to 46.7%, according to a Reuters calculation of data from China’s State Administration of Foreign Exchange.
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  In 2010, the yuan’s share was nearly 0% while the dollar’s was 83%, according to Bloomberg. The reversal comes amid China’s efforts to empower the yuan, also known as the renminbi, in trade and capital markets. Meanwhile, Chinese bonds have seen greater inflows recently, alongside outflow increases to Hong Kong stocks.
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