On September 18th, data released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) showed that in August, in the ranking of payment amounts in major currencies, the US dollar, euro, and pound sterling respectively accounted for 49.07%, 21.58%, and 6.5%, ranking in the top three positions.

The international payment value share of the Chinese yuan reached 4.69%, remaining above 4% for 10 consecutive months.

It experienced a slight decline from the record high of 4.74% in the previous month, and its international payment ranking has been maintained at fourth globally for 10 consecutive months.

Advertisement

Swift pointed out that the payment amount of the Chinese yuan decreased by 4.46% compared to July 2024, and the payment amount of all currencies in August decreased by 3.62% month-on-month.

If the international payment data outside the eurozone is counted, the Chinese yuan ranked fifth in that month, with a share of 3.16%.

The strong remain strong, and despite the world's long-standing dissatisfaction with the US dollar, some countries have been vigorously promoting the process of "de-dollarization."

In recent years, the proportion of the US dollar in trade settlement and reserve currency fields has continued to decrease.

However, due to the strong foundation and early advantages of the United States, the US dollar still firmly holds the position of the world's largest payment currency, occupying nearly half of the payment market, with a significant leading advantage.

The US dollar is backed by the world's number one power and is considered "hard currency" globally.

The vast majority of global commodities are priced in US dollars.

Although the US dollar does not have the title of the world's currency, the United States is truly enjoying the benefits brought by the world's currency.

The euro is still the disappointing "eternal second," with the gap between it and the US dollar widening.

Moreover, the trade settlement between member countries within the eurozone is also included in the payment share of the euro by SWIFT, which is suspected of "padding orders with water."

Compared to its peak when it could compete with the US dollar, in August, the euro's share was only 21.58%, which can be described as a complete "decline of the family."

Not only the US dollar and the euro, but also the pound sterling, ranked third, is also relying on its old foundation.

The United Kingdom's influence among the world's major economies is gradually diminishing, with weak GDP growth and a financial center function being divided.

In August, the pound sterling managed to maintain a share of 6.5%, which can be considered a "legacy of the ancestors."

The Chinese yuan started late but has strong momentum and huge room for improvement.

China is the world's second-largest economy and the largest developing country.

The Chinese yuan is a representative of emerging market currencies and can only rank fourth among the world's most active currencies, with a share of only 4.69%.

In the SWIFT channel, it is difficult to catch up with the US dollar and the euro in the short term.

However, China has set up its own cross-border payment system for the Chinese yuan (CIPS), creating a one-stop service for messaging, payment, settlement, and clearing, and continuously improving its service capabilities, expanding its service scope, and enhancing the security and efficiency of the yuan's clearing and settlement.

Over the years, it has been vigorously promoted.

As of the end of August 2024, the CIPS system had 152 direct participants and 1,412 indirect participants.

Among the indirect participants, there were 1,050 in Asia (563 domestic), 243 in Europe, 52 in Africa, 26 in North America, 21 in Oceania, and 20 in South America.

The CIPS system participants are distributed in 117 countries and regions worldwide, and its business can cover 184 countries and regions worldwide through more than 4,700 legal banking institutions.

The direct participants of the CIPS system can transfer funds without passing information through SWIFT, but the vast majority of indirect participants still need to rely on SWIFT's messaging system to contact direct participants and complete fund clearing.

At the same time, China continues to expand the scope of currency swaps.

So far, China has successively signed bilateral currency swap agreements with the central banks or monetary authorities of more than 40 countries and regions, with a total agreement amount exceeding 4 trillion.

By bypassing the US dollar settlement, it effectively avoids exchange rate risks and increases the frequency of use of the local currency.

The global currency payment share ranking of the Chinese yuan is fourth, with a share of 4.69%.

We should not blindly be confident just because it is the fourth-largest currency, nor should we undervalue the single-digit share.

As the world's second-largest economy and the largest goods trading country, the Chinese yuan has strong backing.

As China continues to open up high-quality to the outside world and gradually liberalize its financial market, the internationalization process of the Chinese yuan will continue to accelerate, and the payment share of the Chinese yuan will surely increase step by step!