China seeks to enhance the role of the yuan in its global trade

The Chinese Central Bank asked major banks to raise the yuan share in cross -border trade facilities, in the latest move from the bank to enhance the use of the currency, while the world faces the barrel of customs duties imposed by the United States.

The Chinese People’s Bank raised the minimum rate of commercial transactions in the yuan from 25% to 40%, as part of the latest amendment to what is called the “MacRo Prudential Assessment” process, according to people familiar with the matter who asked not to disclose their identities so that they can discuss a special issue. While this percentage is not mandatory, banks that you cannot achieve get fewer degrees in organizational review, which affects the expansion of their activities in the future.

The Chinese People’s Bank did not immediately respond to a request for comment.

A temporary customs truce between China and the United States
The large raising confirm Beijing’s intention to accelerate the use of the yuan in global trade, and may have a noticeable impact on the demand for currency, in a period in which the comprehensive customs duties imposed by US President Donald Trump imposed concerns about the attractiveness of the assets denominated in dollars internationally.

The decision comes in light of the negotiations between China and the United States after Trump caused a violent shock in the global economy and global markets by raising the customs duties imposed on China to up to 145%, and after Beijing responded to raising the fees on its part, the two parties agreed earlier this month on a 90 -day truce.

China’s total imports and exports of goods and goods reached 43.8 trillion yuan (6.1 trillion dollars) during 2024, while the percentage of transnational payments for the boundaries in the commodity trade reached 30%, according to what the Governor of the Central Bank revealed, Ban Gongcheng, in January.

Efforts to enhance the use of the yuan in trade
China is making continuous efforts to enhance the use of the yuan in cross -border trade through several various initiatives over the past few months. Last month, the government pledged to develop more cross -border financial services in Shanghai, including raising the efficiency of cross -border payments, and improving hedge services from exchange rates.

Banks can also provide discounts on service fees for exporters and importers to motivate them to use the Chinese currency.

The yuan used in local transactions increased 1.57% since the beginning of the year to 7,187 yuan per dollar.