The Chinese yuan (Renminbi or RMB) has reclaimed its position as the fourth most active currency for global payments by value in November, surpassing the Japanese yen, according to a report released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) on Wednesday. The RMB accounted for a 3.89 percent share of global payments, marking a significant rise in its international usage.
Overall, the value of RMB payments increased by 22.12 percent compared to October, highlighting the growing confidence and reliance on the Chinese currency in international transactions. Prior to September, the yuan had maintained its fourth-place position for ten consecutive months. However, the Japanese yen briefly overtook it in September and October. The resurgence of the RMB in November signifies its strengthening role in global finance.
The People’s Bank of China (PBOC), the country’s central bank, has been proactive in promoting the internationalization of the yuan. It has established bilateral currency swap agreements with 42 foreign central banks and monetary authorities. Of these agreements, 29 are currently effective, with a combined value of approximately 4.1 trillion yuan (about $561.72 billion), according to a PBOC report. These agreements facilitate trade and investment by allowing foreign central banks to access Chinese currency, thus reducing reliance on the U.S. dollar and fostering closer economic ties.
The increased use of the yuan in global payments reflects China’s expanding influence in international trade and finance. For business professionals, investors, and market analysts, this development underscores the growing importance of the Chinese currency in global markets. Academics and researchers may find these trends significant in studying economic shifts and the dynamics of currency usage. For the Asian diaspora and cultural enthusiasts, the yuan’s rising prominence may symbolize China’s enhanced role on the world stage.
As China’s economy continues to integrate with global markets, the RMB’s position in international finance is expected to strengthen further. This trend offers potential opportunities for global investors and signals a shift toward a more multipolar currency system in the future.
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RMB surpasses yen as 4th most popular currency for global payments
cgtn.com
