China’s yuan hits internationalisation landmark with record share of global payments

Data shows China’s yuan has reached a record share of global payments, a welcome sign for the country as it boosts its currency overseas

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China’s yuan has increased its share of global payments, reaching a new record in July. Photo: Reuters

Published: 7:00pm, 23 Aug 2024

The Chinese yuan’s share in global payments hit a record high in July, a milestone in Beijing’s efforts to fend off the hegemony of the US dollar and increase its say in the international monetary system.

The yuan kept its fourth-place spot in the ranking of payment currencies last month, with its share of global transactions rising to 4.74 per cent from 4.61 per cent in June. The increase was observed in data from the Society for Worldwide Interbank Financial Telecommunication (Swift), the world’s largest interbank messaging service.

It was the ninth consecutive month the Chinese currency has stayed above 4 per cent.

Swift payment data is a major indicator for the relative status of international currencies. Other metrics include frequency of use in foreign exchange markets, commodity trading and governments’ foreign reserves.

The data showed the value of payments settled in yuan increased by 13.4 per cent compared with June, outpacing the 10.3 per cent growth recorded across all currencies.

The world’s second-largest economy first encouraged the use of its currency in international trade settlements in 2009, part of its response to the global financial crisis.