- Global central banks tapped a record amount of the Chinese currency in foreign-exchange swap lines in Q1 2023.
- Outstanding balance of all foreign currency swaps was ¥109bn ($15.6bn) at the end of March.
- More countries settling their trade with China in local currencies to reduce reliance on USD.
- Some countries using swap lines to accumulate yuan when running trade deficits with China.
- US sanctions on Russia promoting yuan as alternative currency for international transactions.
Central Banks Use Record Amount of Yuan Via PBOC Swaps
Global central banks tapped a record amount of the Chinese currency in foreign-exchange swap lines in the first quarter, in another indication of the yuan’s growing international status.
