The renminbi has surpassed the yen’s share of global payment transactions for the first time in almost two years, as low interest rates in China boost the appeal of its currency for financing trade with the world’s second-largest economy.

Figures released on Wednesday by international payments platform Swift showed the renminbi’s share of global payments had climbed to 4.6 per cent in November, up from 3.6 per cent a month before. It surpassed the yen for the first time since January 2022 to become the fourth most-used global currency behind the pound sterling, euro and US dollar.

The renminbi has been among the worst-performing global currencies this year, falling about 3.5 per cent to Rmb7.15 against the dollar in the face of sluggish Chinese growth and concerns over a liquidity crisis in the country’s property sector.