Monday, July 21, 2014

RMB developing quickly as major world currency

Just earlier this month, I posted a progress report on the rate of globalization of the Renminbi. In today's China Daily is an update that suggests a rate of development faster than expectation. (The headline of the CD article is the same as the title of my post.)

Last year 4.63 trillion yuan ($746 billion) were used in cross border trade settlement, up 57.5% from 2012. According to the article, the RMB is already the fifth most used international currency after the dollar, the Euro, the British pound and the Japanese yen, accounting for 2.5% of cross border trade settlement.

By the end of 2013, the amount of international bonds and bank notes denominated in RMB increased by nearly 25% YOY to a total worth $71.9 billion.

By year end 2013, China has entered currency swap agreements with 23 countries and regions.

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