The People's Bank of China, the Central Bank of the country, has reportedly demanded that major domestic banks increase the proportion of transactions using the yuan in international trade. This move is interpreted as an effort to strengthen the yuan's influence amid rising uncertainty in the global economy due to the tariff policies of the Donald Trump administration.
According to Bloomberg on the 26th, the People's Bank of China recently raised the lower limit for the proportion of yuan-denominated trade transactions from 25% to 40% as part of an adjustment to the banks' macro-prudential assessment (MPA). Banks that do not meet this ratio may receive lower scores in related assessments, which could affect their future business expansion. While the requirement is not officially mandatory, it effectively carries an element of coercion.
Bloomberg noted that "the sharp upward adjustment in the proportion of yuan-denominated transactions underscores China's determination to accelerate the use of the yuan in global trade," adding that concerns about the appeal of dollar-denominated assets have arisen due to the Trump administration's broad tariffs and this could have a significant impact on the demand for the yuan.
In January, when Trump re-entered the White House, he declared a tariff war specifically targeting China. Once exchanging tariff bombs of over 100% with each other, the U.S. and China agreed to a 'ceasefire' through high-level trade negotiations on the 12th, agreeing to lower tariffs by 115 percentage points for 90 days.