Stay updated with free Global trade news.
Subscribe to our myFT Daily Digest email and receive the latest Global trade news every morning.
Earlier this year, China proudly announced that the renminbi had surpassed the US dollar in its own cross-border payments, signaling its efforts to internationalize its currency.
While China’s status as the world’s second-largest economy and leading trading power, coupled with its emergence as a financial hub comparable to the US, may suggest that the renminbi is poised to become the next global currency, a recent Goldman Sachs report suggests otherwise.
According to SWIFT, the market share of the renminbi in international payments has increased by more than double in the past decade, from 1.1% in 2013 to 2.5% by May 2023.
However, this remains significantly lower compared to the US dollar’s 43% market share, which has actually grown over the same period. Even the British pound maintains nearly three times the importance as an international payments currency.
The portion of renminbi-settled trade in Chinese goods and services has increased by 5.8% over the past decade, reaching almost 20%.
Goldman Sachs highlights that the currency’s overall growth in cross-border payments is primarily driven by increased foreign trading of RMB-denominated securities.
Follow Google NewsDenial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
