The Chinese yuan’s share of global SWIFT payments slid to 2.38% in April 2024, dropping two positions to sixth place worldwide, according to the latest data from the Belgium-based financial messaging network. The decline marks a retreat from the fourth spot the currency held in the previous month, underscoring the uneven pace of renminbi internationalization.
How the rankings shifted
SWIFT — the Society for Worldwide Interbank Financial Telecommunication — processes millions of cross-border payment messages daily. Its monthly currency tracker is a widely watched barometer of a currency’s use in trade and finance. In April, the yuan’s 2.38% slice of total payments was enough for sixth, behind the Canadian dollar, the Australian dollar, the Japanese yen, the euro, and the U.S. dollar, which still dominates with a share well above 40%.
The drop comes after a period when the yuan had been climbing the ranks, briefly overtaking the Japanese yen in late 2023. The two-position slide suggests that short-term momentum can reverse quickly, especially when trade flows and capital account policies shift.
What’s behind the decline
The data alone doesn’t explain why the yuan lost ground. Analysts would point to a mix of factors: China’s slowing economy, cautious foreign investment flows, and the fact that many yuan trades still pass through Hong Kong or offshore centers that aren’t fully captured by SWIFT’s standard reporting. But without attribution to a specific source, it’s safest to note that the currency’s share remains volatile, and April’s figure is still well above the sub-2% levels seen in early 2023.
China has been pushing for wider yuan use through bilateral swap lines, trade settlement agreements, and its own cross-border payment system, CIPS. Still, the SWIFT data shows the greenback’s grip remains firm, and the yuan’s path to becoming a major reserve currency is bumpy.
What the sixth-place ranking means
Dropping to sixth place is more symbolic than structural. The gap between the yuan and the fifth-ranked currency — the Australian dollar — is narrow. A single large trade settlement month could flip the order again. But it’s a reminder that despite Beijing’s efforts, the renminbi hasn’t yet cracked the top five consistently.
The April numbers come as the People’s Bank of China keeps its policy rate low and as the U.S. Federal Reserve holds rates high, a spread that typically encourages dollar-denominated transactions. The next SWIFT report, due in a few weeks, will show whether the yuan can claw back a spot or whether the slide deepens.
