Charts of the Day: Yuan’s Cross-Border Settlements Grew in 2021
China’s currency gained traction globally in 2021, with cross-border yuan settlements growing 29% by value from the previous year, a central bank report shows.
The growing use of the yuan across borders indicates that China’s years-long effort to promote the currency’s use globally — including through its own Cross-Border Interbank Payment System (CIPS) — is paying off.
Cross-border yuan settlements grew to 36.61 trillion yuan ($5.12 trillion) last year, consisting of 18.51 trillion yuan in receipts and 18.1 trillion yuan in payments, according to the People’s Bank of China’s (PBOC) 2022 RMB Internationalization Report (link in Chinese).
The report, published on Friday, also indicated that cross-border yuan settlements are likely to keep growing this year as they rose 15.7% year-on-year to 20.32 trillion yuan in the first half.
The use of the CIPS, a global clearing and settlement system for cross-border yuan-denominated transactions, has also increased, according to the PBOC report.
In 2021, the CIPS processed more than 3.3 million transactions, amounting to 79.6 trillion yuan, up 51.6% and 75.8% compared with the previous year.
Launched in 2015, the CIPS has been seen as a means for China to reduce its reliance on the U.S. dollar for global payments. As of the end of 2021, the CIPS had 75 direct and 1,184 indirect participants, according to the central bank report.
In July, the yuan was the fifth most used currency for global payments by value, with a share of 2.2%, according to data published by the Society for Worldwide Interbank Financial Telecommunication, the dominant global payment messaging system.
Contact reporter Zhang Yukun (email@example.com) and editor Michael Bellart (firstname.lastname@example.org)
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