Yen’s share of global payments drops to lowest level since 2014, Swift’s data shows
- The share of the Japanese currency in global payments fell to 2.54 per cent in November, the lowest level since August 2014
- The yen remains the fourth most-used currency in payments behind the US dollar, the euro and the pound sterling
The Japanese yen is losing popularity as a currency for international payments, allowing the Chinese yuan to narrow the gap in global usage.
The proportion of global payments made using the Japanese currency fell to 2.54 per cent of the total in November, according to data from the Society for Worldwide Interbank Financial Telecommunications, known as SWIFT. That is the lowest since August 2014 and down from a peak of close to 4 per cent in March 2020. Usage was at 2.95 per cent in October.
While the yen remains the fourth most-used currency in such transactions – behind the US dollar, the euro and the British pound – China’s is not far behind. Usage of the renminbi jumped to 2.37 per cent from 2.13 per cent, according to the data.
The prevalence of US dollar transactions, meanwhile slipped to 41.38 per cent, while euro usage climbed to 36.12 per cent. The pound lost ground in November after hitting its highest level since 2016.
The shifts follow a decline in the valuation of the yen this year. The Japanese currency is one of the worst performers in 2022, even after a boost from this week’s shock policy announcement by the Bank of Japan.