Global trading of the Chinese yuan has surged to $817 billion a day, continuing a decade-long trend and bringing volumes closer to those of the British pound, according to the Bank for International Settlements’ (BIS) latest triennial survey.
The yuan now accounts for 8.5% of global currency transactions, up from 7.0% in 2022. While it remains the fifth-most traded currency, it has narrowed the gap with fourth-placed sterling, whose share fell from 12.9% to 10.2%. The US dollar continues to dominate global trading, representing nearly 90% of all foreign exchange activity.
Chinese authorities have long aimed to increase the yuan’s global appeal, easing capital controls and promoting its use in international trade as part of efforts to gradually reduce dependence on the US dollar. However, other measures of the yuan’s global role have shown mixed signals. For instance, its share as a global payment currency in SWIFT transactions dropped to 2.9% in August from 4.7% a year earlier.
The BIS survey also highlighted other shifts in currency markets. Daily trading of the Swiss franc rose to $612 billion, surpassing both the Australian and Canadian dollars to become the sixth most-traded currency. The Hong Kong dollar also increased its share from 2.6% to 3.8%.
Analysts say the rising yuan activity reflects China’s growing influence in global finance, even as the dollar remains overwhelmingly dominant. The shift underscores a gradual diversification in international currency markets amid changing trade and investment patterns.
