The global financial landscape is witnessing a remarkable transformation, with China's yuan, also known as renminbi, taking fourth place among the most used currencies in global payments. This rise, surpassing the Japanese yen, was recently highlighted by Swift, the renowned international payments platform.
In November, the yuan achieved a 4,6% share of global payments, a considerable increase from 3,6% the previous month. This climb not only puts the yuan behind strong currencies like the British pound, euro and US dollar, but also reconfigures the global monetary hierarchy.
One of the driving factors behind this advance is the attractiveness of the yuan for financing international trade, driven by China's lower interest rates. Despite having suffered a depreciation of around 3,5% against the dollar this year, the yuan has been increasing its role in global finance, a significant milestone in the context of Beijing's strategy to mitigate the risks associated with the prolonged dominance of the US dollar .
In the field of trade finance, the yuan has demonstrated impressive performance. China's competitive interest rates have been a driving force making the yuan a more attractive option for international trade despite the exit of foreign investors from the Chinese bond market. According to data from Swift, the yuan's share of global trade finance increased to 5,7% in November, surpassing the euro for the first time since September.
Although it lags behind the dollar, which dominates more than 80% of the global trade finance market, the yuan is emerging as a preferred currency for these transactions. This phenomenon reflects not only economic changes, but also a realignment of geopolitical currents, with China's growing influence on global markets.
The rise of the yuan in global payments, particularly in trade finance, is closely linked to broader geopolitical developments. The imposition of Western sanctions and long-term trends in trade flows are accelerating the adoption of the yuan, especially in Asia and in economies heavily dependent on Chinese demand. This trend indicates a more multipolar financial world, where dependence on the dollar is gradually decreasing.
