China’s yuan currency overtook the euro in October, becoming the second-most used currency in trade finance, global transaction services organization SWIFT said on Tuesday.
The market share of yuan usage in trade finance, or Letters of Credit and Collection, grew to 8.66 percent in October 2013. That improved from 1.89 percent in January 2012.
The yuan, also known as the renminbi, now ranks behind the U.S. dollar, which remains the leading currency with a share of 81.08 percent…
Yup. A long way to go to be competitive. Though, anyone who thinks the RMB will fall by the wayside anytime soon – is deluded.
The top five countries using the yuan for trade finance in October were China, Hong Kong, Singapore, Germany and Australia, SWIFT said in a statement.
“The RMB is clearly a top currency for trade finance globally and even more so in Asia,” Franck de Praetere, SWIFT’s Asia Pacific head of payments and trade markets said…
The world’s second-largest economy is accelerating the pace of financial reform to promote its currency to international players beyond Hong Kong. China aims to lift the yuan’s global clout and reduce its reliance on the U.S. dollar.
Even though the dimwits in Congress still run their trick bag on the American public about Chinese currency being manipulated as cheap – to steal business – they know nothing about ForEx or global biz. It’s been a few years since the PBOC stopped pegging the RMB to the US dollar and it’s only gone in one direction since. Up, up. About a third of a percent, yesterday.
The Western moneyboys are jostling each other in the peloton to get to the front on converting yuan to euros and dollars – and vice versa. The Swiss and the Brits mostly in the lead. This month.