2025 Global International Currency Rankings Shakeup: Renminbi's Rise Is Inevitable, US Dollar's Position Remains Steady as a Rock

According to the latest transaction data released by SWIFT, the global financial communication association, the international currency ranking landscape is quietly changing. In this global competition for payment currencies, the US dollar remains firmly in the lead, but the Chinese yuan is catching up at an unstoppable pace, while the euro continues to lose market share. This shift reflects profound changes in today’s global political and economic landscape.

The Chinese yuan reaches a new high in transaction share, stepping onto the global stage

Data compiled by SWIFT shows that the yuan’s position in international payments is steadily rising. As of spring 2024, transactions involving the yuan have reached 4.7% for the first time, setting a record high since SWIFT established a new benchmark in 2010. In contrast, the euro’s share in international payments has fallen below 22%, gradually being marginalized.

SWIFT connects major banks worldwide and serves as a hub for international currency settlement. By tracking transaction flows within this system, we can clearly see which currencies are truly playing a role in global trade. According to data, the yuan surpassed the Japanese yen at the end of 2023, rising to become the fourth-largest trading currency globally, after the US dollar, euro, and British pound.

The US dollar maintains global dominance, holding an absolute lead

Despite efforts by various countries to elevate their currencies’ international status, the US dollar’s dominance remains unshaken. Over the past few months, the dollar’s share of total global payments has remained relatively stable at around 47%, far surpassing any competitors. This means nearly half of all cross-border transactions are settled in dollars.

The dollar’s continued dominance is rooted in its status as the world’s reserve currency, the depth and liquidity of US financial markets, and the widespread distribution of dollar-denominated assets globally. In the short term, this pattern is unlikely to change fundamentally.

From the periphery to the spotlight: the accelerated internationalization of the yuan

The story of the yuan’s rise is equally remarkable. When SWIFT first began tracking yuan usage in 2010, its share in global transactions was less than 0.1%, almost negligible. Today, in just over a decade, the yuan’s share has increased nearly 50-fold, demonstrating China’s determination and success in promoting the yuan’s internationalization.

The Chinese government is systematically pushing for the yuan’s role in global trade and finance. This process accelerated after 2023, especially amid geopolitical conflicts. For example, US sanctions on Russia effectively became a catalyst for yuan internationalization. In 2022, the use of the yuan in Russia’s export payments surged, indicating that countries are actively seeking alternatives to dollar settlement.

As more nations join yuan trading networks and cross-border yuan payment infrastructure continues to improve, the yuan’s position in the international currency ranking will further strengthen. This silent currency war is profoundly reshaping the global financial landscape.