The Rising Yuan

The yuan has made "rapid progress" as an invoicing currency:

CNY on the Rise, by Menzie Chinn: The preliminary results from the BIS triennial survey for 2013 are out. There are a lot of interesting results, but one I want to flag is that the Chinese yuan is increasingly used in forex transactions. ...

The Chinese government has been quite aggressive in increasing the use of the Chinese currency, as noted in this post. The yuan is far from becoming a reserve currency [1] [2], but there are other dimensions of an international currency that the CNY could fulfill. One of these is use as an invoicing currency, and here, the CNY has made rapid progress.

In a study conducted by myself and Hiro Ito (revision soon to be put online), we document the rise in CNY invoicing for Chinese exports and imports, and compare against JPY invoicing for Japanese exports and imports. ...

In the study, we employ a panel time series analysis to predict invoicing, and conclude that 2010 levels of CNY invoicing of exports are below model-predicted levels, suggesting further increases in home currency invoicing are plausible.

[There are graphs showing the change over time in the original post.]