Renminbi Series: Yuan’s share in global payments rises in June; dollar still dominates

Despite President Trump’s toughening stance towards foreign policies and trade relations and use of USD as a means to impose sanctions, the dollar continues to be the preferred currency in the global payment system.

The dollar continues to dominate:

• According to the latest SWIFT report, the U.S. dollar accounted for 40.1 percent of all global payments, processed through the SWIFT in the month of June 2019.
• The share of the USD up 0.1 percent compared to May, but still down 0.66 percent from April.

However, Yuan is continuing its gradual rise,

• In June 2019, the Yuan’s share in global payments rose by 0.04 percent m/m to 1.99 percent.
• Despite the rise, Yuan’s payment value declined by 1.83 percent compared to May 2019. All currencies payments value decreased by 3.55 percent.
• Yuan is currently the fifth most used currency in the payment system, behind the USD, the euro (33.74 percent), the pound (6.63 percent), and the Japanese yen (3.73 percent). The yuan is the eighth most used currency when payments within Eurozone excluded with 1.28 percent share compared to 45.9 percent for USD.