Core Insights - The share of the Chinese yuan in global transactions has reached 8.5%, an increase of 1.5 percentage points over the past three years, marking the largest growth among all currencies [1][2][5] Market Dynamics - The rise of the yuan is attributed to accelerated internationalization, with more countries and enterprises opting for yuan in cross-border transactions, moving from a dollar-centric approach to a more diversified currency usage [2][5] - China's push for local currency settlements and bilateral swap agreements has facilitated the normalization of yuan settlements in major commodity transactions [2][5] Global Environment - The global reliance on the US dollar is gradually diminishing due to its increased volatility and concerns over the US financial system, creating an opportunity for the yuan to emerge as a viable alternative [5][9] - Despite US attempts to limit the yuan's international use through financial restrictions, the yuan's acceptance and usage have continued to grow, indicating a market shift that is not solely dictated by US interests [7][9] Structural Changes - The global monetary system is undergoing a significant transformation, moving from a dollar-dominated structure to a dual-track system where multiple currencies coexist [11][14] - The yuan is transitioning from a supplementary role to a primary pathway in international transactions, particularly in regions like Asia, Africa, and Latin America [11][13] Future Outlook - The rise of the yuan signals a deeper structural change in the global financial landscape, with a potential shift towards a more balanced international monetary system where multiple currencies play significant roles [16][17] - The ongoing development of digital yuan is enhancing the convenience of cross-border payments, contributing to the gradual normalization of yuan-denominated financial products in international markets [13][16]