RMB Photo: VCG

In April China’s yuan has retained its position as the fifth most active currency for global payments by value, with a share of 2.14 percent global payments currency, down from the 2.20 percent in March, said global payment services the Society for Worldwide Interbank Financial Telecommunication (SWIFT) on Wednesday.
Experts said that short-term fluctuation is normal and the Chinese currency is expected to play a rising role on the global stage over the long term.

Due to fluctuations in the global economy and financial markets, major currency experienced a short-term monthly fluctuations in the share of international payment and settlement, Zhou Maohua, a macroeconomic analyst at Everbright Bank told the Global Times on Thursday.

Zhou attributed to the slide of yuan share in global payment in April a slowdown in China’s foreign trade in the month amid the COVID-19 outbreaks as well as market fluctuations amid divergent policies of major economies and geopolitical conflicts.

In April China’s yuan has remained its position as the fifth used currency in global payment, behind the US dollar, the euro, the pound and Japanese yen.

The share of US dollar expended to 41.81 percent in April from the 41.07 percent in March, remaining its position as most used global payment currency. It was followed by euro which edged down to 34.74 percent in April from the 35.35 percent in March and British pound which dropped to 6.26 percent from the 6.47 percent a month ago.

As China further steps up efforts to promote the internationalization of the yuan, and accelerate its dual circular economy mode, opening up to international economy, the Chinese currency is expected to play a rising role in global payments, settlements and foreign exchange reserves over the long term, Zhou said.

In a major show of growing global recognition of the Chinese currency and the Chinese economy, the IMF has lifted the Chinese yuan's weighting in the Special Drawing Rights (SDR) currency basket to 12.28 percent from 10.92 percent in its first regular review of the SDR valuation since the Chinese currency was included in the basket in 2016, the People's Bank of China (PBC), the country's central bank, said in a statement on Sunday.

Global Times