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Global Edition
July 30, 2024
HIGHLIGHTS:
The renminbi has surpassed the euro to become the second-largest trade finance currency in June.
Mntns its position as the fourth most active payment currency globally, following the US dollar and the Euro.
China's national currency, the renminbi RMB, recently achieved a notable milestone by overtaking the euro as the second-biggest trade finance currency. Swift data revealed that in June, the RMB's share in global trade finance markets stood at 5.99, surpassing the euro's value of 5.92. This marks the renminbi's ascension since November last year when it surpassed the euro.
In terms of global payment transactions by value, the RMB showed a significant increase to 4.61 from its position in June last year, which was only at 2.77, and compared with the previous month’s share of 4.47.
The renminbi has been consistently ranked as the fourth most active currency for global payments since August 2023, trling behind the US dollar, euro, and British pound but outpacing Japan's yen.
In recent years, China has significantly enhanced its international economic influence through strategic initiatives that have bolstered the RMB's usage in global trade transactions. This includes the Belt and Road Initiative, which has facilitated infrastructure development projects across continents and supported the use of renminbi as a financing tool for such eavors.
The growth of renminbi's role in global finance underscores China's evolving economic dynamics and its commitment to fostering international cooperation through financial innovation.
By Zhou Lanxu
China Dly July 30, 2024
In the realm of global economics, the Chinese Renminbi has recently achieved a significant milestone by overtaking the Euro as the second most influential trade finance currency in June. Swift data highlights that during this month, the RMB's share in global trade finance markets reached an impressive peak of 5.99, surpassing the Euro’s value of 5.92. This marks an upward trajectory for the RMB since November last year when it surpassed the Euro.
Moreover, the RMB also solidified its position as one of the top four most active payment currencies globally, coming after the US dollar and the Euro while ranking above Japan's yen in terms of value transactions by percentage. The renminbi has been holding this rank for eight consecutive months since August 2023.
The consistent rise in RMB's global financial influence highlights China’s growing economic prowess and its pivotal role in global trade networks. This development is a testament to the nation's strategic initiatives like the Belt and Road Initiative, which has not only driven infrastructure projects across continents but also enabled the use of renminbi as a primary financing medium for these initiatives.
As China continues to play an increasingly significant role in global financial systems, the growth trajectory of RMB signifies its rising importance on the world stage. This advancement showcases China's commitment to fostering international cooperation through innovative financial mechanisms and strategic economic partnerships.
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Renminbi Outpaces Euro in Trade Finance RMBs Ascension to Second largest Currency Global Payments Share of Renminbi Increases Chinas Economic Influence Through Finance Belt and Road Initiatives Financial Impact Renminbis Position Among Major Currencies