SINGAPORE - The yuan has taken over the Japanese yen to become the fourth-most used currency in the world as of August, according to the Society for Worldwide Interbank Financial Telecommunications.
A new Singapore Exchange (SGX) report also noted that China recently launched the first phase of the China International Payment System in Shanghai.
This provides capital settlement and clearing services for cross-border yuan transactions for financial institutions domestically and abroad.
The SGX My Gateway report noted that this will further accelerate the pace of yuan internationalisation.
The yuan has regained 1 per cent against the United States dollar since the surprise revaluation on August 11, said SGX.
It added: "The sharp rise in volatility for both onshore and offshore yuan markets has spurred increased demand for effective currency hedging tools to protect against downside risk."
The report also noted that trading volume for SGX USD/CNH futures is more than US$167 billion in notional value traded since its inception 12 months ago.