The reshaping of the 2024 international payment landscape: the rise of the RMB and new changes in the global monetary system

Renminbi Share Reaches New High, International Status Continues to Rise

According to the latest transaction data released by SWIFT, the global banking and financial telecommunications association, the international payment market is quietly undergoing a structural shift. In March 2024, transactions involving the renminbi accounted for 4.7%, reaching a new high since SWIFT began tracking related data. This seemingly small figure represents the accelerated progress of the renminbi’s internationalization. Meanwhile, the euro’s market share has fallen below 22%, forming a stark contrast.

As the world’s most important financial messaging system, SWIFT connects thousands of banks worldwide. Its transaction data can accurately reflect the flow of currencies in global trade. Although SWIFT’s statistics do not cover the entire foreign exchange market, their representativeness is unquestionable, enough to reveal deep changes in the international payment field.

A New Order in Global Currency Rankings Has Emerged

In this reshuffling of global currency rankings, the renminbi surpassed the Japanese yen in November 2023, rising to become the fourth-largest trading currency worldwide. The current ranking order is the US dollar, euro, British pound, followed by the renminbi, reflecting the rising influence of emerging market currencies.

The US dollar, as the global reserve currency, remains unshakably dominant, maintaining around 47% of total global payments in recent months. This share far exceeds that of other competitors, fully demonstrating the dollar’s core position in the international financial system, which is unlikely to be challenged in the short term.

From Zero to Fourth Globally: The 14-Year Transformation of the Renminbi

Looking back to 2010, when SWIFT first began tracking the international use of the renminbi, its share was less than 0.1%, almost negligible. From less than one-thousandth to over 4.7%, the renminbi has achieved exponential growth in less than 15 years, with an increase of over 470 times. This speed is rare among major international currencies.

Geopolitical Catalysts and Economic Fundamentals

The acceleration of the renminbi’s internationalization is supported by strong economic fundamentals and driven by external factors. For example, in 2022, changes in the international situation led to a surge in the use of the renminbi for payments related to Russian exports, demonstrating that, under economic sanctions, global transaction participants are seeking settlement tools beyond the US dollar.

At the same time, China’s role in global trade and finance continues to strengthen, making trading partners increasingly need to settle in renminbi. This endogenous economic demand, combined with policy-driven support, has jointly propelled the continuous expansion of the renminbi’s share in international payments.

Future Outlook

Whether the renminbi can further rise depends on the interaction of multiple factors—economic growth momentum, financial market openness, and the evolution of the global political and economic environment. However, based on current trends, the upward momentum of the renminbi in the global currency rankings has become an irreversible trend.