Key facts
- Over 95% of overseas companies surveyed by Bank of China plan to maintain or increase their use of the yuan for cross-border settlements.
- 34.5% of foreign firms expect their cross-border yuan settlements to increase, and 61.4% anticipate no change.
- The share of overseas companies expecting a decline in yuan usage dropped significantly to 4.1% from 21.6% a year ago.
- The survey involved 1,013 overseas companies and indicated a growing willingness to hold yuan assets.
- The proportion of foreign firms planning to hold yuan earnings as deposits for future trade payments reached a five-year high of 32% for 2025.
The international appetite for China's yuan is growing, with a significant majority of overseas companies anticipating sustained or increased use of the currency for cross-border transactions, according to a recent Bank of China survey. The findings suggest a strengthening confidence in the yuan's role in global trade.
The poll revealed that over 95% of foreign businesses surveyed expect to maintain or boost their cross-border yuan settlements in the coming year. Specifically, 34.5% of these firms foresee an increase in their yuan settlement activities, while 61.4% anticipate the usage to remain unchanged. This indicates a "steadying willingness" to employ the yuan, as the percentage of overseas companies expecting a decline in its use plummeted to 4.1% from 21.6% a year earlier.
The survey, conducted in January and February, encompassed 3,501 businesses, including 1,013 overseas companies. The results emerge as Beijing actively promotes the yuan's internationalization through various channels, such as bilateral currency-swap agreements and enhanced offshore liquidity. Furthermore, the report highlighted a growing inclination among foreign firms to hold yuan-denominated assets. The share of overseas companies planning to retain their yuan earnings as deposits for future trade payments with China is projected to reach a five-year high of 32% in 2025, an increase of 6.4 percentage points from the previous year. This trend is attributed to the currency's perceived stable purchasing power.