The Chinese yuan or also known as renminbi (RMB) has outperformed the Canadian dollar and the Australian currency as a global payments and ranks as the fifth global currency behind the Japanese yen, British pound, euro and dollar.
Data made public the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and according to history ( see chart), shows how the renminbi (RMB) has been climbing : he was at position 14 (in January 2013) with a market share overall payments 0.63%; He rose to eighth in December of that year and now, in December 2014, reached a very historical share of 2.17% hit the Japanese yen (2.69%), which has boosted him to fifth in the world.
“That the yuan to enter the top five global currencies is a milestone payment. It is the proof of the great internationalization of the RMB and confirms its transition from a ‘pop’ currency to another usual in business. Increasing offshore centers compensation, including eight new agreements signed with the PBOC in 2014, has fueled this growth , “says Wim Raymaekers, Head of Banking Markets at SWIFT.
The Global yuan payments increased in value by 20.3% in December, compared with growth of 15% in the total of coins. OECD echoed this meteoric rise is but wonders whether even though the Chinese economy is the second largest in the world , its currency can compete with the US dollar as a global currency. The dollar represents 44.6% of global payments and euro, 28.3%.
In his analysis of the news, Bloomberg cites Nathan Chow, an economist at DBS Group Holdings Ltd. in Hong Kong: “The yuan has a very high probability of being selected as a reserve currency in the next revision of the IMF. It could even surpass the yen in the ranking this year. “
China is the second largest economy in the world, behind only the United States and the largest exporter and the yuan spent the euro in 2013 to become the second most used in financing world trade. The nation is promoting greater use of its currency by designating clearing banks in the financial centers of the world and is expanding a program that allows yuan deposited in havens be invested in their domestic capital markets.
The People ‘s Bank of China will promote the internationalization of yuan in an orderly fashion this year, according to a statement on 20 January. More than 50 central banks and monetary authorities already have yuan as part of its reserves, Chow added.
Liu Hong, an economist at BOC Hong Kong Holdings Ltd, also cited by the news agency, said that “as China seeks the status of reserve currency for the yuan is unlikely to allow sharp declines and may even favor a modest appreciation trend. “