Beijing: The Japanese yen is losing favour as an international payment currency, allowing the Chinese yuan to close the currency usage gap.

According to data from the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, the proportion of global payments made in Japanese currency fell to 2.54% of the total in November. This is the lowest level since August 2014, and it is well below the peak of close to 4% in March 2020. In October, usage was at 2.95 percent.

While the yen remains the fourth most commonly used currency in such transactions, trailing only the US dollar, euro, and British pound, China's currency is not far behind. According to the data, renminbi usage increased to 2.37 percent from 2.13 percent.

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Meanwhile, the prevalence of US dollar transactions fell to 41.38 percent, while euro usage increased to 36.12 percent. The pound fell in November after reaching its highest level since 2016.

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The changes come on the heels of the yen's depreciation this year. Even after a boost from the Bank of Japan's surprise policy announcement this week, the Japanese currency is one of the worst performers in 2022.

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