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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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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