Yuan's international payment share hits record high in September 
The yuan's share of international payments hit a record high of 3.71 percent in September and the currency retained its position as the fifth most active for global payments, data from the SWIFT system showed.
Yuan's international payment share hits record high in September 
The Economics of Geography

Yuan's international payment share hits record high in September 

Photo: iStock
Eurasia 23/10/2023 11:23

The yuan's share of international payments hit a record high of 3.71 percent in September and the currency retained its position as the fifth most active for global payments, data from the SWIFT system showed.

Total payments in yuan increased by 2.77 percent in terms of value compared with the previous month, SWIFT data revealed, according to Global Times.

Since the beginning of the year, there have been notable developments in the yuan's internationalization, such as surpassing the euro to become the second-largest currency in Brazil's foreign exchange reserves, Argentina's first-ever use of the yuan to repay foreign debts, and Pakistan's inaugural payment of Russian crude oil expenses in yuan.

The first time that the yuan exceeded the 3 percent benchmark was in January 2022, when it reached 3.2 percent.

The yuan has become the world's fifth-largest currency for reserves, payments and trading, and the third-largest for trade financing. In May 2022, the IMF increased the Chinese currency's weight in the Special Drawing Rights currency basket from 10.9 percent to 12.3 percent.
AFP/Imaginechina/Xu Congjun
As China's economic strength steadily grows, its position in global industry and supply chains continues to rise, and the functions of the yuan as an international reserve currency and payment currency continue to strengthen. More and more countries are actively promoting currency arrangements and partnerships with China, experts said.

In China's own cross-border transactions, the proportion of yuan settlements reached 49 percent in the second quarter, surpassing the US dollar for the first time, according to media reports.

The yuan has seen constantly increasing use scenarios, efficiency and total volume in recent years, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times.

On the one hand, the yuan's internationalization will facilitate the advance of China's economy and society, help boost the efficiency of its outbound trading, and contribute to the global development of Chinese industries, Wang noted.

On the other hand, it could also improve the trading efficiency of countries or other entities that use the yuan for settlement, and help reduce losses caused by exchange rate fluctuations, according to Wang.

With the support of the country's economic and social development, its colossal consumption market, and many good partners in the world, the trend of the yuan's internationalization is unstoppable, Wang said.
#China
See Also
US, India inch closer to trade deal cutting tariffs
US, India inch closer to trade deal cutting tariffs

US President Donald Trump said Monday that Washington and New Delhi are “pretty close” to finalising a trade agreement that could ease tariffs and mark a breakthrough in months of tense negotiations between the two countries.
Chinese brands may also displace European ones from MediaMarkt shelves
Chinese brands may also displace European ones from MediaMarkt shelves

A new era in global economic competition may be dawning with the acquisition by China's JD.com, one of the Far East's largest online and offline retail companies, of a 57.1 percent majority stake in Germany's Ceconomy, which operates the MediaMarkt and Saturn retail chains, for 860 billion forints. This move is not merely a business transaction, but a symbolic sign of the restructuring of the global economy: while a decade ago Western companies were trying to conquer the Chinese market, now Chinese companies are preparing to take over European shelves. The acquisition of JD.com suggests that the Chinese economic model is no longer based solely on the role of supplier, but on the global positioning of its own brands and products, according to the analysis by Oeconomus.
China halts export ban to US on critical materials
China halts export ban to US on critical materials

China has suspended its export ban on key technology metals to the United States, including gallium, germanium and antimony – materials vital for semiconductor and high-tech production – Beijing’s commerce ministry announced on Sunday.

We use cookies on our website. If you consent to their use, we use them to measure and analyze the use of the website.
Information and Settings

Accept