Major Australian mining companies are increasingly using the Chinese yuan for financing and settlements, thereby aiding China's efforts to internationalize its currency and reduce U.S. dollar dominance. China's low interest rates are a key incentive for this shift.

Australia’s mining giants are aiding China’s push to internationalise its currency and reduce the dominance of the US dollar, as they gradually shift towards using the yuan for financing and settlements, analysts said. China has been using its heft as the world’s dominant iron ore buyer to push global mining companies to adopt the yuan. And several firms are already making the switch, with China’s relatively low interest rates becoming an added incentive. BHP, the world’s largest mining company,...