China's yuan is displacing other top global currencies in trade, but not the US dollar

Thu, 08/24/2023 - 11:24

Arrangement of various world currencies including Chinese Yuan, US Dollar, Euro, British Pound, in this picture illustration taken January 25, 2011. REUTERS/Kacper Pempel/Illustration/File Photo — Arrangement of various world currencies including Chinese Yuan, US Dollar, Euro, British Pound
Thomson Reuters

The yuan's growing use is chipping away at second-tier currencies, such as the pound, ING said.
China's share of global payment transactions on the SWIFT system grew to 3% in July.
But that hasn't come at the expense of the dollar, which had a record high 46.5% share on SWIFT.

The Chinese yuan's gradual rise in global finance is pulling down other top currencies but not the dollar, according to ING, despite Beijing's desire to challenge the greenback's dominance.