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28 Jan 2015
China's Yuan Lists In Top 5 Most-Used Currencies
FXStreet (Mumbai) - The Chinese Yuan overtook the Canadian and Australian dollars in popularity in December, according to the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Yuan has become one of the five most popular currencies used worldwide, announced by SWIFT on Wednesday.
The agency said that the Yuan, officially known as renminbi, now ranks behind the US dollar, the euro, the British pound and Japanese yen.
The Yuan’s advance is an "important milestone," and shows the Chinese currency's transition from an emerging to a "business as usual" currency, Wim Raymaekers, SWIFT's head of banking markets, said in a statement.
The Yuan’s exchange rate is still controlled by the People's bank of China, the country's central bank, and the currency doesn't trade freely on global markets.
However, China has signed agreements with a growing number of foreign financial institutions, including London, Zurich and Toronto, for Yuan clearing transactions.
The Yuan accounted for 2.17% of global payments in December, a 20.3% increase. It puts the currency behind the yen's 2.69% share, according to SWIFT. The US dollar's use is currently at about 45%.
Yuan has become one of the five most popular currencies used worldwide, announced by SWIFT on Wednesday.
The agency said that the Yuan, officially known as renminbi, now ranks behind the US dollar, the euro, the British pound and Japanese yen.
The Yuan’s advance is an "important milestone," and shows the Chinese currency's transition from an emerging to a "business as usual" currency, Wim Raymaekers, SWIFT's head of banking markets, said in a statement.
The Yuan’s exchange rate is still controlled by the People's bank of China, the country's central bank, and the currency doesn't trade freely on global markets.
However, China has signed agreements with a growing number of foreign financial institutions, including London, Zurich and Toronto, for Yuan clearing transactions.
The Yuan accounted for 2.17% of global payments in December, a 20.3% increase. It puts the currency behind the yen's 2.69% share, according to SWIFT. The US dollar's use is currently at about 45%.