US dollar falls 0.94%, share in China's forex down 46.7%
Al Bawaba – China's foreign exchange reserves rose by 0.65 percent in April, official data showed on Sunday, May 7, as news outlets report U.S. dollar decline against basket of major currencies.
According to Reuters, the world’s largest foreign exchange reserve, held by China, has grown even larger as of the end of April, from $3.192 trillion to $3.205 trillion, citing a $21 billion increase; or 0.65 percent.
For at least two months, China’s reserves have been growing, as Reuters reported China’s reserves amounted to $3.184 trillion in March, 2023.
US Dollar, China’s Yuan down
Meanwhile, the U.S. dollar has taken a fall against a basket of other major currencies, dropping by 0.94 percent last month, the international news outlet reported.
The Chinese Yuan also fell by 0.63 percent against the dollar in April. However, China’s Silk Road Briefing stated that the Yuan surpassed the U.S. dollar in cross-border transactions in March/April.
Yuan slowly replacing US Dollar in China’s trade
Chinese foreign trade transactions settlements in Yuan surged from a total of $434.5 billion in February, to a record high of $549.9 billion in March, the Silk Road Briefing reported.
Overall, the Chinese national currency was used in 48.4 percent of all cross-border transactions, according the Chinese Belt and Road Initiative’s information hub.
The U.S. dollar’s share in China’s international transactions dropped to 46.7 percent in March, from 48.6 percent the month before, data provided by the Silk Road Briefing showed.
