Recently, transaction data compiled by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) showed that the yuan’s share of international payments rose to 4.6 percent in November 2023 from 3.6 percent in October, a record high for the yuan. In November, the renminbi’s share of global payments surpassed the Japanese yen to become the fourth largest currency for international payments.

This is the first time since January 2022 that the yuan has surpassed the Japanese yen, becoming the world’s fourth most used currency after the US dollar, the euro and the British pound.

Looking at an annual comparison, the latest data shows that the yuan’s share of global payments has almost doubled compared to November 2022, when it accounted for 2.37 percent.

The steady increase in the yuan’s share of global payments comes against the backdrop of China’s ongoing efforts to internationalize its currency.

The renminbi’s share of total cross-border lending jumped to 28 per cent last month, while the PBOC now has more than 30 bilateral currency swap agreements with foreign central banks, including the central banks of Saudi Arabia and Argentina.

Separately, Russian Prime Minister Mikhail Mishustin said this week that more than 90 percent of trade between Russia and China is settled in renminbi or rubles, the Russian state news agency TASS reported.

The renminbi overtook the euro as the world’s second-largest currency for trade finance in September, as renminbi-denominated international bonds continued to grow and offshore renminbi lending rose.

Source: Shipping Network