The renminbi's share of global payments via SWIFT rose to 3.1% in June, extending a multi-month trend as China's de-dollarization push accelerates.
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Yuan's share of global SWIFT payments climbs to 3.1% in June
The renminbi's share of global payments via the SWIFT system rose to 3.1% in June from 2.75% in May, the latest sign that China's campaign to boost the yuan's international use is gaining traction among emerging-market economies.
"Clients are increasingly seeking longer-dated yuan facilities for working capital and cross-border capex, moving well beyond traditional trade settlement," a Standard Chartered Plc spokesperson said, according to a Bloomberg report.
The 0.35 percentage-point month-over-month increase marks one of the largest single-month gains in the yuan's SWIFT share this year. Angola's Banco de Fomento Angola is set to join China's Cross-Border Interbank Payment System to meet growing yuan demand, according to a person familiar with the matter. Bank of China (Hong Kong) has reported an increase in both the number and size of its offshore yuan loans, reflecting deepening liquidity in the offshore market.
The yuan's rising share in global payments underscores a broader shift away from dollar dominance, driven partly by the U.S. weaponization of the dollar through sanctions. If the trend continues, it could accelerate demand for yuan-denominated assets, strengthen the currency, and pressure the dollar index, while benefiting Chinese equities and bond markets.
De-dollarization Gains Steam
The yuan's SWIFT share has been on a gradual upward trajectory as China pushes for wider use of its currency in cross-border trade and investment. The People's Bank of China has been expanding bilateral swap lines and promoting the CIPS system as an alternative to SWIFT for yuan-denominated transactions. The last time the yuan's share approached this level was in late 2023, when it briefly touched 3.0% before retreating — suggesting the current advance may have more staying power given the structural drivers now in place.
The U.S. sanctions on Russia and other nations have accelerated the search for dollar alternatives, with several emerging-market central banks diversifying their reserve holdings. The yuan now accounts for a growing share of global foreign exchange reserves, though at roughly 2.5% it still lags far behind the dollar's 58%, the euro's 20% and the yen's 5.5%, according to IMF data.
What's at Stake for Markets
A sustained increase in yuan usage could have significant implications for global markets. It may lead to greater demand for Chinese government bonds, which are already included in major global bond indices such as the Bloomberg Global Aggregate Index. The offshore yuan bond market, or dim sum bond market, has also seen increased issuance as borrowers seek to tap lower Chinese interest rates compared with dollar funding costs. Hong Kong's offshore yuan deposits have reached a record high, providing the liquidity base for this expansion.
The dollar still accounts for roughly 47% of SWIFT payments, dwarfing the yuan's 3.1% share. But the direction of travel is clear: each monthly increase chips away at dollar hegemony. The next SWIFT data release, expected in late August, will show whether the yuan can sustain its momentum above the 3% threshold.
This article is for informational purposes only and does not constitute investment advice.
[1] China's Swift RMB share in global payments in June 3.1%, previous 2.75%[2] Angola's BFA to join China's CIPS to meet growing yuan demand, source says[3] Hong Kong’s Offshore Yuan Market Evolves Into Global Funding Hub[4] BYD, China’s EV king, posts a 55% slump in first-quarter profit[5] America’s weaponization of the dollar gives rise to a growing yuan bloc
