The Chinese yuan, also known as the Renminbi (RMB), has climbed to the fourth spot as the most active currency for global payments by value. According to a recent report by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the yuan accounted for 3.89% of global payments in November, surpassing the Japanese yen.
This represents a significant increase of 22.12% in RMB payment value compared to October. While the yen had briefly reclaimed the fourth position in September and October, the yuan’s resurgence in November highlights its growing importance in international finance.
The People’s Bank of China (PBOC), China’s central bank, has established bilateral currency swap agreements with 42 foreign central banks and monetary authorities. Of these, 29 agreements are currently active, amounting to approximately 4.1 trillion yuan (about $561.72 billion). These agreements facilitate cross-border trade settlements and investments using the yuan.
Experts like Xi Junyang, a professor at the Shanghai University of Finance and Economics, note that more countries are opting to use the yuan for international transactions. “The data indicates that the yuan is gaining popularity as more countries choose it for cross-border trade settlements, investment, and financing,” he said.
The yuan’s rise reflects China’s expanding role in the global economy and could lead to more diversified global payment systems less dependent on traditional currencies like the U.S. dollar.
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RMB surpasses yen as 4th most popular currency for global payments
cgtn.com
