(Yicai Global) Oct. 19 -- The yuan has been the world's sixth-largest payment currency since the end of last year, holding a market share of 1.68 percent, China's central bank, the People's Bank of China, said in this year's annual report on the internationalisation of the currency, released on Oct. 17.
The redback will be more widely used in more countries and for more purposes in the future, the report added.
Total cross-border payments and receipts in yuan totaled CNY9.85 trillion (USD1.49 trillion) last year, making up 25.2 percent of cross-border transactions worldwide and positioning the yuan as the second-most used currency for such transactions for the sixth straight year. By the end of the year, 18 countries and regions had become Foreign Qualified Institution Investors holding a total of CNY1.51 trillion.
The People's Bank of China had also signed bilateral currency exchange agreements with central banks from 36 countries and regions by the end of 2016, totaling CNY3.3 trillion, and set up yuan clearing agencies in 23 nations.
With the improvement of the yuan exchange rate mechanism and the development of the Belt and Road Initiative, more markets will begin to accept the currency for settlements, the report said.
Since the yuan made its way into the Special Drawing Right currency basket on Oct. 1 last year, the redback's international standing has continuously improved, and central banks in several countries are now more willing to accept the yuan as a reserve currency.Keywords: Yuan Is World’s Sixth Largest Payment Currency With 1.68% Market Share, PBOC Says