The Chinese Yuan, China’s national currency, is now outpacing the Euro in terms of borrowing.
Bolstered by insanely high interest rates in the West—particularly in America, companies and financial firms have flocked to China as a cheap source of debt financing.
The Chinese yuan showed record gains in September as its share in international payments surged to 5.8%, up from 3.9% at the beginning of the year, outperforming the euro for the first time, data from SWIFT revealed.
China, the undisputed leader of the BRICS economic alliance, has been looking to replace the US dollar as the world’s global reserve currency.
There has been some talk from the BRICS countries of coming together to release a new gold-backed currency that would permanently dethrone the dollar, yet no official strides have yet been made in that direction.
Multiple outlets and influencers took note of the historic change:
🚨🇨🇳🇪🇺 The CHINESE YUAN has SURPASSED the EURO, making it the second most utilized currency in SWIFT trade settlements. pic.twitter.com/yr1CZdrdo3
— Jackson Hinkle 🇺🇸 (@jacksonhinklle) November 19, 2023
The Chinese #Yuan is now the world's second most-used currency, surpassing the #Euro! With the dollar's constant printing, more might turn to the Yuan. But let's not forget, traditional currencies aren't the endgame. Our future? It's in #crypto – #Bitcoin, #Ethereum, and beyond!… pic.twitter.com/41nfCip7K2
— Sydney TheCMO (@SydneyThecmo) November 19, 2023
The Chinese Yuan Becomes the Second Most Traded Global Currency In the world by passing the Euro!
With Ultra Low central bank Rates as the ultimate attractant for International firms looking to cut cost in world trade.
— BTCKING (@BitcoinKingom) November 19, 2023
— 🇪🇺 🇲🇨🇨🇭Dan Popescu 🇫🇷🇮🇹🇷🇴 (@PopescuCo) November 15, 2023
Watcher Guru presented more data:
Data from SWIFT shows that cross-border transactions in Euro fell from 32.64% to 31.74%, a decline of close to 0.9%.
On the other hand, the Chinese Yuan narrowed the gap reaching a high of 3.71% in September last month.
SWIFT payments in the Chinese Yuan increased by 2.77% from the previous month in August 2023.