The Japanese yen is losing popularity as a currency for international payments, allowing the Chinese yuan to narrow the gap in global usage.
(Bloomberg) — The Japanese yen is losing popularity as a currency for international payments, allowing the Chinese yuan to narrow the gap in global usage.
The proportion of global payments made using the Japanese currency fell to 2.54% of the total in November, according to data from the Society for Worldwide Interbank Financial Telecommunications, known as SWIFT. That’s the lowest since August 2014 and down from a peak of close to 4% in March 2020. Usage was at 2.95% in October.
While the yen remains the fourth most-used currency in such transactions — behind the US dollar, the euro and the British pound — China’s is not far behind. Usage of the renminbi jumped to 2.37% from 2.13%, according to the data.
The prevalence of US dollar transactions, meanwhile slipped to 41.38%, while euro usage climbed to 36.12%. The pound lost ground in November after hitting its highest level since 2016.
The shifts follow a decline in the valuation of the yen this year. The Japanese currency is one of the worst performers in 2022, even after a boost from this week’s shock policy announcement by the Bank of Japan.
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