Based on data from the global SWIFT system, the yuan has surpassed the euro to become the second most important currency in trade settlements for the first time since data became available six years ago. From 4.82% in August 2023 to 5.8% in September 2023, the yuan’s share of global trade financing reached its greatest level in the previous five years.
The dollar continues to hold the top spot, accounting for 84.15% of trade settlements. The Japanese yen is the fourth most used currency for overseas payments, behind the euro at number three. Since mid-2022, the yuan’s proportion of global trade finance has been going upward as China increases attempts to boost the currency’s use as a substitute for the dominating U.S. dollar in cross-border transactions. By value, the yuan was still the sixth most used currency for international payments in September.
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