"In a further milestone, the yuan briefly overtook the euro last year as the second-most used currency in global trade finance, albeit with 5.8% of the market versus the dollar's 82%, according to SWIFT, the global messaging network banks use to settle international payments. The yuan's share of global currency reserves also reached its highest-ever level in the second quarter of the year at 2.4%, the International Monetary Fund (IMF) said in October."
"While BRICS nations of the Global South recently explored alternatives to the dollar, including proposals for a shared currency, China has taken a more pragmatic approach, steadily building the yuan's role in global trade while deliberately maintaining controls on currency exchange. "China wants the yuan to become internationalized for trade for the real economy," Miguel Otero-Iglesias, senior fellow at the Elcano Royal Institute in Madrid, Spain, told DW. "It is less interested in the yuan becoming a financial currency."
China began reducing reliance on the US dollar after the 2008–2009 global financial crisis and the PBOC launched a July 2009 pilot to settle cross-border trade in yuan. The pilot expanded into a 16-year effort that now sees the yuan settle 30% of China’s global goods trade and 53% of all cross-border payments, including bond purchases and foreign investment. The yuan briefly surpassed the euro in trade finance share and reached a 2.4% peak in global reserves. China has pursued pragmatic internationalization focused on trade while keeping exchange controls and limiting full financial liberalization.
Read at www.dw.com
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