More than 1,700 banks worldwide have now adopted the use of the yuan through the Cross-Border Interbank Payment System (CIPS), which is operated by China. This development is widely viewed as a strong indication of the weakening dominance of the US dollar in global trade.

According to data from The Economist, CIPS processed 175 trillion yuan (equivalent to Rp402.325 trillion) in cross-border transactions in 2024, representing a 43% increase compared to the previous year. The network now involves participants from Turkey, Mauritius, the United Arab Emirates (UAE), and has recently expanded its reach into Africa and the Middle East.

“The yuan has reached its highest level since Trump’s re-election. Foreign investors and numerous governments are now seeking alternatives to the dollar,” the report stated on Tuesday (September 16, 2025).

The rise of the yuan comes amid a downturn in the US dollar. Since January, the American currency has fallen by 7%, marking its worst start to a year since 1973. Contributing factors include President Donald Trump’s inconsistent trade policies, widening fiscal deficits, and concerns over the independence of the Federal Reserve.

Unlike SWIFT, which is predominantly dollar-based, CIPS allows transactions to be settled directly in yuan. This enables Chinese exporters, manufacturers, and trading partners to avoid reliance on the dollar entirely.

Han Kwee Juan, Head of the Institutional Banking Group at DBS, confirmed this trend, noting that more Chinese exporters are pushing for payments to be conducted in yuan.

“Today, you see Chinese exporters beginning to say: I will sell in RMB, so please settle in RMB,” he told Reuters. “I believe this trend will continue as their trade expands further beyond the US.”

This shift is also aligned with the strategies of BRICS nations, which are strengthening their gold reserves, experimenting with local currency settlements, and discussing the formation of a new financial order less dependent on the US Treasury market.

Analysts have warned that if this trajectory persists, overseas demand for the dollar could weaken substantially, potentially fueling inflationary pressures within the United States. For the global market, the rise of CIPS signals a rapid shift of the world’s financial power center toward Asia, further solidifying the yuan’s position as a new cornerstone of the international monetary system.