China’s yuan surpasses euro as world’s 2nd trade currency

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China’s yuan has overtaken the euro to become the second most-used currency in international trade finance, a global transaction services organisation said on Tuesday.

The market share of the yuan, also known as the renminbi (RMB), in traditional trade finance reached 8.66 percent in October, surpassing the euro on 6.64 percent, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) said in a statement.

Global trade remains utterly dominated by the US dollar, which it said had an 81.08 percent share.

“The RMB is clearly a top currency for trade finance globally and even more so in Asia,” said Franck de Praetere, Asia Pacific head of payments and trade markets for SWIFT.

The organisation said China, Hong Kong, Singapore, Germany and Australia were the top five countries and regions using yuan for trade finance as of October.

China, the world’s second-biggest economy, has been promoting its currency in order to seek a bigger role in the global financial arena.

Authorities have pledged to loosen controls over interest rates and to further open up its capital account on a trial basis in a new free trade zone in Shanghai.

 

 

Source : Channel News Asia | December 3, 2013

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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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