The US dollar is like the top student in the class; no matter how hard you try, it always seems to effortlessly lead the pack. The latest global payment currency rankings have been released, and the US dollar has once again firmly secured its position at the top with a somewhat embarrassing ease, defending its Olympic champion status in currency. Although our Chinese yuan can only claim the bronze medal, its rate of progress and potential are definitely worth dedicating a growth diary to.

Let's start with a little-known fact that is not often mentioned. A group of currencies are running on the global payment track, and the US dollar is like the athlete who has always been the best, with others unable to catch up. Data from June 2024 shows that the US dollar's attention in the global payment field reached a domineering 47.08%, a number that might be a little shocking to hear. The euro is not far behind, accounting for 22.72%, and the British pound is also not lagging, achieving 7.08%.

But the dark horse of the competition is our Chinese yuan. Although it currently ranks fourth with a 4.61% share, this is already a significant achievement for its status as a latecomer. The general growth journey of the yuan can be described as a typical "the youth is to be feared."

Looking back, the US dollar's dominant position did not happen overnight. Starting from the 1970s, it shone like gold, almost becoming a hard currency in international trade. Once the gold standard collapsed, the US dollar began to gain control over the pricing of most commodities through various means, such as deeply binding oil transactions and leveraging the global influence of the United States. This is not just a financial victory, but also a victory of strategy and influence.

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In contrast, the decline of currencies like the euro and the British pound, which have decades of capital accumulation, has helped them maintain a relatively strong competitiveness in the global payment market to some extent. Nevertheless, their performance still lacks ambition, seemingly more focused on enjoying the dividends bestowed by history.

In comparison, the rise of the Chinese yuan is even more fascinating. Since China joined the WTO in 2001, "Made in China" has quickly captured the global market, and by 2010, it surpassed Japan to become the world's second-largest economy. With the rise of "Made in China," the performance and internationalization of the yuan are improving year by year.In the realm of international payments, the performance of the Chinese yuan is extremely noteworthy. This year has been remarkable, with China's total import and export value of goods trade reaching an astonishing 21.17 trillion yuan, which not only reflects the vitality of China's economy but also highlights the important role of the yuan in international trade.

Additionally, China has independently developed the Cross-Border Interbank Payment System (CIPS), a system capable of facilitating cross-border yuan payments, marking a significant step in the internationalization of the yuan. Although the CIPS system was launched quickly and the number of participating institutions is still growing, it already covers 116 countries and regions, indicating the expansion trend of the yuan in the global payment system.

Overall, while SWIFT data indicates that the international payment activity of the yuan stands at 4.61%, this figure may underestimate the true activity level of the yuan. After all, the existence of the CIPS system means that many cross-border payment activities may not be accounted for by SWIFT. This also implies that the actual influence of the yuan in the global payment sector could be far greater than what we currently perceive.