SHORT TAKE-China's push to boost yuan's global role quietly gaining traction, says Oxford Economics
China's yuan is gaining traction in international trade, with its use rising and interest in its global role increasing, according to Oxford Economics. Despite modest global gains, the yuan's share in cross-border settlements and local banks' foreign-related transactions has grown significantly. The yuan's appreciation and U.S. policy uncertainty are driving speculation about its global adoption, though it still plays a small role in international payments.
LONDON, Dec 3 (Reuters) - The use of China’s yuan in international trade continues to rise and interest in increasing its global clout has jumped sharply in the past year, but the currency’s footprint beyond China remains modest, Oxford Economics said in a report on Wednesday.
WHY IT’S IMPORTANT U.S. policy uncertainty, highlighted by President Donald Trump’s sweeping import tariffs, has raised speculation about the dollar’s status as the world’s No.1 currency. The yuan, alongside the euro, is seen as a key beneficiary of a turn away from the dollar. The currency is also known as the renminbi.
KEY QUOTES
“On the one hand, the use of the RMB (renminbi) as a settlement currency in China’s international trade flows continues to increase,” Oxford Economics said.
“On the other hand, the RMB’s global footprint remains limited, with only modest gains in the global market on several measures, indicating the need for further efforts to promote the currency’s global adoption.”
CONTEXT
This year’s steady appreciation of the tightly-managed yuan has reignited speculation that Beijing is renewing its campaign to drive the yuan’s global use, analysts say.
SWIFT data shows the yuan still has a relatively small role in international payments.
BY THE NUMBERS
Oxford Economics said during the first three quarters of 2025, cross-border settlement stood at around 13 trillion China yuan ($1.8 trillion), up 11% year-on-year.
That is equivalent to 39% of China’s goods trade over the same period and is four times larger than in 2017.
Oxford Economics also noted the yuan’s share in local banks’ foreign-related receipts and payments for clients rose to 52% in the first three quarters of this year, from 18% in 2017. The dollar’s share dropped from 71% to 43% over the same period.
MARKET REACTION
In 2018, when Trump was president for the first time, the yuan fell about 5%. In 2025, it is up nearly 3% (CNY=CFXS) .
It has been guided higher by the Chinese central bank, while frequent dollar buying by state banks has capped volatility.
GRAPHICS
The dollar remains by far the world’s most traded currency
China’s yuan has steadily strengthened against the dollar this year
