Core Insights - The report from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) indicates a 6.74% increase in total international payment amounts in September compared to August, signaling a recovery in international trade and investment [2] - The US dollar remains dominant with a share of 47.79%, while the euro has decreased to 22.77%, indicating a significant decline [2][3] - The Chinese yuan's payment amount surged by 15.53% month-on-month, reaching a share of 3.17%, surpassing the Canadian dollar to become the fifth most used currency in international payments [2][5] Currency Performance - The US dollar's strength is attributed to the robust US economy, increased use in energy trade, and adjustments in Federal Reserve policies [3] - The euro's decline is partly due to uneven economic performance within the Eurozone, with major economies like Germany and France performing well but overall external payments being affected [3] - The yuan's growth from less than 1% in 2011 to over 3% now reflects a long-term upward trend, driven by increased trade with ASEAN countries [3][7] Market Dynamics - The yuan's rise to fifth place is notable among emerging currencies, pushing the Canadian dollar down to approximately 3.10% [5] - The ranking of currencies shows the US dollar as the clear leader, with other currencies struggling to catch up [5] - Limitations in SWIFT's data collection methods mean that the actual share of the yuan may be underestimated, as domestic payments and transactions with countries like Russia and Iran are not fully captured [5][9] Internationalization of the Yuan - The internationalization of the yuan accelerated in the early 2010s, with its inclusion in the Special Drawing Rights (SDR) basket in 2016 enhancing its reserve currency status [7] - Despite fluctuations, the yuan's share has shown potential for growth, aligning more closely with China's status as the world's second-largest economy [7] - The strong performance of Chinese exports and supportive policies for cross-border usage have contributed to the yuan's recent surge in international payments [9]