Core Viewpoint - The internationalization of the Renminbi (RMB) has seen a recent adjustment, with its global payment share declining to 2.88% as of June 2025, ranking sixth globally, following a drop below 3% in May and June [1][3][7] Group 1: Global Payment Landscape - The US dollar remains dominant in global payments, holding a 47.2% share in June 2025, despite a decline of over 1 percentage point from the previous month [3] - The euro, as the second-largest payment currency, maintained a stable share of 23.9% in June, highlighting the strong position of Western currencies in the global payment system [5] - The British pound's share increased to 7.6%, supported by London's status as a major financial hub, while the Japanese yen and Canadian dollar also saw slight increases in their payment shares [7] Group 2: Factors Behind RMB Payment Share Adjustment - The decline in RMB payment share is not directly linked to the US-China trade war, as China's foreign trade showed growth in the second quarter of 2025 [9] - The rapid development of the Cross-Border Interbank Payment System (CIPS) has led to a significant increase in RMB cross-border payment efficiency, with a 43% year-on-year growth in transaction amounts processed by CIPS in 2024 [11] - The structural differences in payment scenarios, where small cross-border payments are often processed outside the SWIFT system, contribute to the perceived decline in RMB payment data [13] Group 3: Future Outlook for RMB Internationalization - The adjustment in RMB payment share reflects a diversified internationalization path, with CIPS and other financial innovations expanding the use of RMB beyond traditional trade [15] - Continued economic cooperation with countries along the Belt and Road Initiative and ASEAN will provide broader opportunities for RMB in regional trade settlements [15] - The ongoing optimization of financial infrastructure, including the integration of CIPS with local clearing systems, is expected to enhance RMB settlement efficiency [15][17]