The yuan climbed to a 19-year high as the central bank set arecord reference rate amid growing usage of the currency forworldwide trade and investment.

Global yuan payments increased 32.7 percent in March from theprevious month and the currency ranked 13th in terms ofinternational payments, Society for Worldwide Interbank FinancialTelecommunication said today. Hong Kong Monetary Authority saidtoday that value of trade settled in China's currency by the city'sbanks rose 45 percent from a year earlier in the first quarter to830 billion yuan ($135 billion), while Australia's central bankannounced plans yesterday to put about 5 percent of itsforeign-exchange reserves in China.

“Australia's plan is very positive for the yuan as that suggestsincreasing demand,” said Banny Lam, the Hong Kong- based co-head ofresearch at Agricultural Bank of China International SecuritiesLtd., a subsidiary of the nation's third-largest bank. “Capitalinflows continue to be strong and band widening could happen assoon as this weekend. Yuan usage has been rising globally.”