Building Yuan from strength to strength
- In 2013, China started seeking a larger role for its money in global trade and investment and China loosened controls on the "exchange rate and borrowing costs" to make that happen.
- Agreements were advertised in China regarding "the start of direct currency trading" amongst yuan, British pound and Singapore dollar.
- Moreover, the opening of Chinese capital markets was leading to its larger international circulation.
Yuan trumps Canadian dollar for global payments
28 Jan 2015
- The Canadian dollar was overtaken by yuan to rank fifth for use in global payments.
- This jump bolstered its case for becoming a reserve currency with the International Monetary Fund.
- More than 50 global banks have already held yuan as a reserve currency further strengthening its case.
- The dollar and euro remained the two most used currencies, followed by the pound and Japan's yen.
Reforms in China making Yuan stronger
5 Oct 2015
- The reason behind Yuan's climb as a payment currency has been due to the narrowed gap between its onshore and offshore prices.
- This narrowing of the gap has been mostly because of the recent foreign exchange reforms implemented by China's central bank.
- Chinese efforts to check capital outflows and gain confidence in 'stable foreign exchange rates' eased investor concerns making Yuan flourish
Renminbi overatakes 7 currencies in 3 years
6 Oct 2015
- The Renminbi overtook seven currencies during the last 3 years reaching a record high share of 2.79% in global payments in August 2015.
- Within the last year, over 1,700 financial institutions advanced worldwide payments in RMB, marking a 14% rise compared to 2014.
- Previously the Renminbi (Yuan/RMB) was ranked number 12 with a share of 0.84% as a world payment currency in 2012.
Singapore and UK use Yuan the most
The Yuan was most used in Singapore (24.4%) followed by the United Kingdom (21.6%).
Yuan the 4th most-used payment currency
6 Oct 2015
- According to the global transaction services organisation SWIFT, China's Yuan became the fourth most-used world payment currency by overtaking Japanese yen in August.
- Currently, Yuan is only after the "US dollar, the euro and the sterling" as a payment currency.
- The payments for Yuan increased in value by 9.13% while the other currencies decreased by 8.3%.