The Chinese yuan got a lift in the currency markets after the US-China deal went through on Monday…

The Chinese yuan got a lift in the currency markets after the US-China deal went through on Monday in Geneva. Cross-border payments in the local currency hit a record high as swap lines settled 4.3 trillion worth of yuan in Q1. The People’s Bank of China (PBOC) seized the confusion regarding trade wars and tariffs and leveraged the opportunity to push the local currency on the global stage.

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Financial analysts reveal that there is a greater appetite for the Chinese yuan globally than for any other local currency. This puts it on the path of growth as the government is facilitating its usage across all sectors. Though it’s growing at a snail’s pace compared to other leading currencies, its market share cannot be written off. The currency seems to have more steam and is power hungry to grab the spotlight.

China Promotes QR-Code Payments To Push Chinese Yuan Globally

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China has launched a new QR-code payment facility called UnionPay and is majorly promoting it in Southeast Asian countries. This means that tourists and small businesses in these Southeastern countries can easily pay using the Chinese yuan through the QR-code scanner. According to the latest report from Reuters, around 30 countries outside China have been facilitated with the QR-code payment facility.

The development makes spending money internationally by tourists and small businesses an automatic option in the Chinese yuan. It is no longer an ‘investment’ currency anymore as its usage can be done on foreign soil by regular people. Reports also state that the PBOC is working towards making QR-code payments soon available for commodity trade settlements.

Efforts to price every commodity from oil to gold and other metals in the Chinese yuan are slowly taking place. The global financial architecture could change dramatically when the facility extends to the commodity sector. The settlements would be massive, giving China and the Chinese yuan a major boost in the arm.

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