(Yicai Global) April 17 -- For the first time ever, most cross-border settlements in Guangdong, the province with the biggest economy in China, were made in Chinese yuan in the first quarter.

Guangdong’s cross-border settlements in yuan rose 7.2 percent to CNY1.67 trillion (USD242.9 billion) in the three months ended March 31 from the previous quarter, accounting for 51.6 percent of the total, according to data released by the People's Bank of China on April 14.

The redback has been the dominant cross-border settlement currency in the Guangdong-Hong Kong-Macao Greater Bay Area for three consecutive years, according to the central bank.

Cross-border settlements in yuan with entities from the Belt and Road initiative and the Regional Comprehensive Economic Partnership agreement reached CNY204.9 billion (USD29.8 billion) and CNY209.1 billion, up 19.9 percent and 26.6 percent, respectively, PBOC data showed.

Yuan payments for the cross-border trade in goods jumped 11.1 percent to CNY450.1 billion, while that for cross-border direct investment climbed 39.7 percent to CNY413.7 billion, per the PBOC.

The PBOC’s branch in Guangzhou, Guangdong’s provincial capital, increased its business publicity efforts to promote cross-border yuan settlements and supported and guided key regions, fields, and enterprises to use the yuan as the settlement currency.

As of March 31, the number of high-quality firms in Guangdong soared to 3,122, with a cumulative settlement amount of CNY658.1 billion.

Moreover, the PBOC’s Guangzhou branch has continuously increased the number of pilot financial institutions providing services such as free trade accounts, cross-border cash management, and cross-border two-way transfer.

Guangdong added 255 new free trade accounts in the first quarter, with the amount transferred up 27.5 percent from a year earlier at CNY324.9 billion.

In the Greater Bay Area, cross-border cash management jumped 1.3 times to CNY802 million (USD116.6 million) in the first quarter from the same period last year.

Some 14 banks in Guangdong, Shenzhen excluded, launched cross-border two-way transfer of Chinese yuan assets, with the sum reaching CNY86 billion (USD12.5 billion), up 1.6 times in the period.

Editors: Shi Yi, Futura Costaglione