China trade: yuan settlements seen rising as geopolitical strife fuels currency diversification

The expansion of yuan settlements in trade seen since early 2020 will continue, analysts say, as companies look to hedge concerns over the changing rates in a more complicated geopolitical environment.

Data from international insurance company Allianz Trade showed that the share of Chinese trade settled in yuan rose from less than 20 per cent to nearly 30 per cent between early 2020 and August 2022, while more than 40 per cent of global trade is conducted with US dollars.