In a notable policy shift, Chinese authorities are ramping up efforts to promote the use of the yuan in global trade. According to Bloomberg, the People's Bank of China has raised the minimum share of cross-border trade settled in yuan to 40%. Beijing views the expansion of the national currency's use as a strategic imperative.

In response to mounting trade tensions with the United States, the People's Bank of China tightened requirements for the country's largest banks, urging them to increase yuan-denominated transactions in cross-border trade. As part of a broader macroprudential review, the regulator raised the required ratio to 40% from 25%.

Although the guideline is not mandatory, banks that do not comply risk receiving lower scores during regulatory inspections. This penalty could hinder their operational capacity and expansion prospects.

"The move aims to accelerate the use of the yuan in global trade, which could impact demand for the currency amid US tariffs and trade tensions," Bloomberg noted.

The decision comes against a backdrop of the yuan's weakening performance in international settlements. In April, amid growing tariff friction between Washington and Beijing, the Chinese currency's share in global trade payments fell by 0.63 percentage points, reaching 3.5%. Over the same period, Chinese exports to the United States plunged by 21%, experts noted.