SHANGHAISINGAPORE, April 28 Reuters Chinese banks are ramping up efforts to promote international use of the yuan, and reporting a surge in crossborder yuan business from the country39;s booming trade with Russia and deepening ties with the Middle East.

Harbin Bank Co, in China39;s Heilongjiang province neighboring Russia, saw its crossborder yuan business grow ninefold last year to a record, as the SinoRussia trade grew briskly after the Ukraine war began.

China Construction Bank and Agricultural Bank of China AgBank reported total assets at their Moscow subsidiaries jumped 3.3 times and 1.4 times, respectively, in 2022, while Russia was put under harsh western sanctions.

Admittedly the growth came off a low base, but these small steps in yuan adoption come after a string of bilateral deals by China with its trade partners, such as its oil purchases from the Gulf and other trade with Brazil and Russia.

The yuan39;s share of global payments is merely 2.5, and tiny compared with U.S. dollar39;s 39.4 and euro39;s 35.8, according to SWIFT, the global payment messaging system controlled by the West.

But Reuters analysis of banks39; latest filings shows how the oneyearold Ukraine war that led to Russia being kicked out of the dollar system, is revving up China39;s efforts to extend the plumbing for an alternative currency system.

China should prepare for the worstcase scenario of being excluded from SWIFT, and actively promote crossborder use of the yuan, Wang Jiehua…