# China's small steps on offshore use of yuan are starting to add up | Reuters

> China is gradually expanding the use of its yuan in international payments through bilateral deals with partners including Middle East oil suppliers, Brazil and Russia. Analysts see incremental progress toward a parallel trade settlement system, though yuan share of global payments remains about 2.2%.

- Date: 2023-04-27 · published 2023-04-27T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/36605-china-s-small-steps-on-offshore-use-of-yuan-are-starting-to-add-up-reuters
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Yuan settlement of trade could reduce reliance on dollar payments over time, a structural factor for currency and commodity trade flows. The near-term price impact on feed markets is limited.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-06-05 | [US dollar to weaken, but Fed rate cuts are required, say strategists:  Reuters poll](https://feedsoft.ai/events/29967-us-dollar-to-weaken-but-fed-rate-cuts-are-required-say-strategists-reuters-poll.md) | +1.1% | +0.9% |
| DXY | 2016-10-13 | [Dollar stalls, yuan hits 6-year low on Chinese trade dip](https://feedsoft.ai/events/5888-dollar-stalls-yuan-hits-6-year-low-on-chinese-trade-dip.md) | -0.6% | +0.8% |
| DXY | 2021-09-23 | [BoE sees growing case for rate rise as inflation to stay higher for longer \| Reuters](https://feedsoft.ai/events/45307-boe-sees-growing-case-for-rate-rise-as-inflation-to-stay-higher-for-longer.md) | +1.0% | -0.0% |
| DXY | 2021-01-28 | [China's yuan inches up as tight liquidity pushes interbank rates higher \| Financial Post](https://feedsoft.ai/events/49361-china-s-yuan-inches-up-as-tight-liquidity-pushes-interbank-rates-higher.md) | +0.2% | -0.1% |
| DXY | 2021-03-10 | [Dollar claws back some losses as U.S. yields stabilise \| Reuters](https://feedsoft.ai/events/48317-dollar-claws-back-some-losses-as-u-s-yields-stabilise-reuters.md) | -0.8% | -0.7% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/chinas-small-steps-offshore-use-yuan-are-starting-add-up-2023-04-27/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.