11 months ago, we shared data from China’s State Administration of Foreign Exchange that showed that the volume of outbound cross-border payments made in yuan (CNY) had outstripped those made in US dollars for two months in a row, while the currency remained a close second for inbound payments. Now the same has been achieved for inbound cross-border payments in CNY, and both continue to climb.

Over the past year, inbound non-banking cross-border payments to China, also referred to as receipts, have had several periods where CNY has consistently taken a greater share than USD. From May to September, CNY represented a greater share than USD, and from January 2024 until March, the most recent month available, it did so again.

Outbound non-banking cross-border payments from China, meanwhile, have seen CNY take a greater share every month since March 2023, with the gap widening significantly over the past year. USD made up its third-lowest share ever in March 2024, at 41.4% of outbound payments, behind July 2023 (41.2%) and August 2023 (39.6%).

Notably, both inbound and outbound payments in CNY now account for more than 50% of all non-banking cross-border payments, with both having done so for the past two months. In March 2024, outbound payments in CNY were 53.2% of the total, while inbound payments in CNY were 52.6%. 

This represents a dramatic change over the last 15 years, with CNY having a less than 1% share at the start of 2010 for both inbound and outbound payments and only passing 25% in 2013 for outbound payments and 2014 for inbound payments. It also comes as overall volumes have climbed significantly over the same period, increasing by over 600% between 2010 and 2024. 

However, year-on-year changes have been more volatile amid wider macroeconomic uncertainty. While February 2024 saw outbound and inbound volume increase 25% and 27% YoY respectively, March 2024 saw declines of -22% and -20% respectively. Nevertheless, April is likely to see a return to growth, with Beijing last week reporting that China’s exports and imports had risen above forecasts in the month. 

How is cross-border payments policy shaped by FXC Intelligence’s data?

Lucy Ingham

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Lucy is Head of Content & Editor-in-Chief at FXC Intelligence, overseeing all content and taking deep dives into the trends and data driving changes in payments. Before joining FXC Intelligence, Lucy worked as a technology journalist and editor, interviewing CEOs and major names across enterprise technology, including fintech. She has an MSc in Development Anthropology from Durham University.