China’s currency is steadily gaining influence in global trade as Beijing continues efforts to expand the international use of the yuan, according to a new analysis from Goldman Sachs.
The report highlights a significant rise in the use of the Chinese yuan for cross-border settlements over the past several years, reflecting a broader push by China to reduce reliance on the US dollar in global transactions and strengthen its financial influence.
Goldman Sachs Goldman Sachs said trade settlements in yuan have nearly tripled since 2019, showing a clear upward trend in international usage despite ongoing global dominance of the US dollar.
According to the investment bank’s analysis, the share of China-linked trade settled in yuan rose from around 13% in 2019 to approximately 30% last year. This growth reflects increasing acceptance of the currency in global trade networks and expanding financial infrastructure supporting cross-border payments.
However, the report also notes that the yuan’s international usage still does not fully match China’s share of the global economy. While adoption is rising, the currency remains less widely used than major global reserve currencies.
The bank also reported a sharp increase in total cross-border yuan transactions. These rose from about 9 trillion yuan (approximately US$1.32 trillion) in 2017 to around 64 trillion yuan in 2024, indicating rapid expansion in international financial flows denominated in the Chinese currency.
The analysis was authored by Goldman Sachs China economist Chen Xinquan, who pointed to continued policy efforts from Beijing aimed at increasing the yuan’s global role. These efforts include promoting trade settlement in yuan, expanding currency swap agreements, and developing offshore yuan markets.
China has been actively encouraging businesses and trading partners to use the yuan in international deals, particularly in energy, commodities, and infrastructure projects. These initiatives are part of a long-term strategy to strengthen financial sovereignty and reduce exposure to external financial risks.
Despite the rapid growth, economists note that full internationalisation of the yuan remains a gradual process. Factors such as capital controls, regulatory frameworks, and global trust in financial systems continue to influence adoption rates.
Still, analysts say the upward trend suggests increasing confidence in the currency among global trading partners, especially in emerging markets that have deepened economic ties with China in recent years.
The findings come at a time when global financial systems are undergoing gradual shifts, with more countries exploring alternative payment systems and diversified currency use in international trade.
While the US dollar remains the dominant global currency, the rising use of the yuan in trade settlements signals a slow but steady diversification in global financial flows.
Economists expect China to continue expanding the international footprint of its currency through trade agreements and financial infrastructure development, even as challenges remain in achieving full global convertibility.
For now, the data suggests that the yuan’s role in global trade is expanding, but still has significant room to grow before it reaches parity with the world’s leading reserve currencies.
