The international trade is quickly shifting in favour of the Chinese yuan, leaving the Euro behind in third place while pushing it to the second position after the US dollar. China, being a member of BRICS, is working on replacing the Euro with the Chinese yuan as the second most used currency. The Xi Jinping government is urging global businesses to adopt the use of the currency for trade, thereby pressuring many underdeveloped nations into using it.
Recent data from Bloomberg indicates that in April 2024, the Chinese yuan surpassed the Euro, but the Euro regained its position in June. According to the latest information from SWIFT, a payment messaging system, nearly 60% of transactions conducted through it were made using the Chinese yuan in April 2024. Later in June, trade payments with yuan increased by 13.37%, retaining its second-place ranking after the US dollar.
This shift has been occasioned by BRICS group plans aimed at reducing the dominance of both the US dollar and Euro while promoting the adoption of local currencies, including the Chinese yuan.
