An official Chinese newspaper cited experts as saying that short-term fluctuation is normal and the yuan is expected to play a rising role on the global stage over the long term.

Everbright Bank macroeconomic analyst Zhou Maohua said due to fluctuations in the global economy and financial markets, major currency experienced a short-term monthly fluctuation in the share of international payment and settlement.

Zhou attributed a slowdown in China’s foreign trade in April amid the COVID-19 outbreaks as well as market fluctuations amid divergent policies of major economies and geopolitical conflicts to the slide of yuan share in global payment in the month.

The share of US dollar expended to 41.81 per cent in April from 41.07 per cent in March, remaining its position as most used global payment currency. It was followed by euro which edged down to 34.74 per cent in April from 35.35 per cent in March and British pound which dropped to 6.26 per cent from 6.47 per cent a month ago.

As China further steps up efforts to promote the internationalisation of the yuan, and accelerate its dual circular economy mode, opening up to international economy, the Chinese currency is expected to play a rising role in global payments, settlements and foreign exchange reserves over the long term, Zhou added.

Fibre2Fashion News Desk (DS)