China's share of global payments processed via the SWIFT network decreased to 2.85% in April, falling from 3.10% in the previous month. This drop may seem small in percentage terms, but it represents a significant 8% decline in relative terms, especially when payments are hovering around the 3% mark. SWIFT's data shows that under a different measurement for April 2025, the Chinese yuan (RMB) holds a larger share of 3.5%, ranking fifth globally. However, when considering only transactions outside the Eurozone—excluding Eurozone internal trades that inflate the euro’s figures—the RMB's share dwindles to 2.38%, placing it in sixth position.
Examining the actual value of RMB payments through SWIFT, there was a notable decrease of 14.14% month-over-month. In contrast, global payment values across all currencies rose by 1.35% in the same timeframe, indicating that while the RMB's prominence is reducing, other currencies are gaining traction.
The emergence of China's Cross-border Interbank Payment System, known as CIPS, is noteworthy. CIPS has expanded its network to connect over 11,500 financial institutions in more than 235 countries. This initiative not only enhances China's oversight of international payment data but also offers a viable alternative for nations wishing to conduct trade in RMB, thus bypassing the established Western-controlled financial networks.
Chinese officials have made their objectives clear, focusing on enhanced trade and investment facilitation while improving the synergies between domestic and foreign currency operations. Despite these efforts, there remain significant hurdles for the RMB's international usage. Capital controls imposed by China create barriers for investors and businesses, generating hesitancy in maintaining large RMB balances due to the stringent regulations on capital flows. Additionally, the depth of China’s bond markets, although expanding rapidly, does not yet match the transparency and accessibility of dollar-denominated markets.
The fluctuations in the RMB's share of global payments highlight its vulnerability to changing economic sentiments and market perceptions regarding Chinese policies. Rather than a steady increase, the currency's share has experienced significant volatility.
For investors, the situation is critical to watch. If a nation with China's economic stature, which has robust government support and infrastructure, struggles to maintain a payment share above 3%, it signals deeper issues within the existing financial system. Investors should keep an eye on the 14.14% month-over-month decline in RMB payment values to discern whether this is a temporary setback or a sign of a longer-term trend.