BREAKING

Yuan's share of transactions at highest point since January '22: SWIFT

By Al Mayadeen English
Source: Agencies
21 Jun 2023 22:47

In January 2022, the share of the yuan in SWIFT transactions was 3.2%.

In this Tuesday, Aug. 6, 2019, photo, a man walks by a money exchange shop decorated with Chinese yuan banknotes and other countries' currency banknotes at Central, a business district in Hong Kong (AP)

SWIFT's system data showed on Wednesday that the share of Chinese Yuan in international trade via the global payment system reached its highest level since January 2022, totaling 2.54% in May.

In January 2022, the share of the yuan in SWIFT transactions was 3.2%. In May 2023, it leveled up 0.25 percent on a month-on-month basis.

The dominant currency remained the US dollar, with data showing that 42.6% of all transactions were made in US dollars. However, the share dropped by 0.11% compared to April.

The Euro's share remained stable in May, with a slight decrease of 0.04 percentage points to 31.7%.

former CIA and Department of Defense advisor and investment banker James Rickards predicted earlier this month that August 22 will be the day the US dollar's status, as the world reserve currency and medium for exchange will formally collapse.

"On August 22, about two-and-a-half months from today, the most significant development in international finance since 1971 will be unveiled," Rickards wrote in reference to the upcoming BRICS+ Leaders Summit which will unveil plans for substituting the dollar in global trade.

Rickards said that the push for a new currency spearheaded by the BRICS+ group will "affect world trade, direct foreign investment and investor portfolios in dramatic and unforeseen ways," and cause an "unprecedented [...] geopolitical shockwave."

He also said that the BRICS+ plans for expansion are "the most important development of the BRICS system," noting that eight countries have so far already applied for membership, along with twelve others expressing an interest in joining the bloc, including Saudi Arabia, which assisted the US in propelling the dollar currency to the status of world hegemon through establishing the petrodollar system.