Yuan Passes Euro as Second-Most Used Trade-Finance Currency

The currency had an 8.66 percent share of letters of credit and collections in October, compared with 6.64 percent for the euro, Swift said in a statement today

The renminbi is clearly a top currency for trade finance globally and even more so in Asia,”

The European Central Bank and the People’s Bank of China agreed to establish a bilateral currency swap line of as much as 350 billion yuan, the Frankfurt-based central bank said in October.

The yuan has appreciated 2.3 percent against the greenback this year, the best performance in Asia, according to data compiled by Bloomberg. The currency closed at 6.0924 per dollar today in Shanghai, little changed from yesterday.

Yuan Passes Euro as Second-Most Used Trade-Finance Currency

Well...now we know why the US - China tensions are rising ...

reply to post by maddy21


This will only remain the case so long as the RMB stays pegged to the dollar. If the Chinese allow it to float, investors will dump the currency like a hot potato.

reply to post by DJW001


Umm... I think it's the Chinese who are dropping the dollar. Think BRICS

Q33323
reply to post by DJW001

 

Umm... I think it's the Chinese who are dropping the dollar. Think BRICS

A quarter of their economy is exports, nearly 20% of exports go to the US. * If their dollar gets too high they will get slammed and it will have to drop to keep them competitive.

High dollar gives them what edge exactly?