Trades involving yuan, as a share of all currencies, rose to a record 4.6-percent last month from 3.6 percent in October, topping the yen's 3.4 percent, according to transaction data by global financial messaging service Swift.
And according to the Q3 2023 Chinese Monetary Policy Report, cross-border yuan transactions soared by 24 percent, reaching 38.9 trillion yuan ($5.48 trillion).
Wenzhou, a contributing factor of this shift, witnessed a 2.4-percent monthly increase in yuan's share in international transactions to an impressive 23 percent.
This surge is closely tied to the yuan's stabilizing exchange rate, enticing overseas enterprises to favor yuan for cross-border trade and financing.
Financial institutions, meanwhile, proactively align with the central policies. Wenzhou companies, seizing the opportunity, have embraced yuan as the settlement currency, mitigating exchange risks and accelerating fund repatriation. And this practice has substantially increased exports, particularly to companies exporting to Russia.
The city's pivotal role in fostering foreign trade, coupled with its streamlined processes, solidifies its need for using yuan in settlement.
