China and UAE cross-border QR payment link to boost the global yuan

China and UAE cross-border QR payment link to boost the global yuan Beijing linking its retail payment networks with Dubai is another step toward yuan internationalisation and reducing US dollar reliance “The partnership would help expand the scope of cross-border renminbi application, contributing strongly to yuan internationalisation,” Dong Junfeng, chairman of China UnionPay, told domestic media outlets on July 15. For Beijing, building an alternative financial infrastructure is a strategic priority as it seeks to reduce reliance on the US dollar and shield its trade from potential geopolitical shocks. Beyond the new retail QR link, BOC will act as the exclusive clearing bank for Jaywan, the UAE’s national debit card, handling all yuan-denominated transactions, foreign exchange, and clearing services. The push comes as the yuan’s global footprint faces near-term headwinds. In May, the renminbi’s share of global payments fell to around 2.75 per cent, ranking sixth globally, according to data compiled by Swift - the main messaging network used by the global banking system.