Arab Today, arab today chinas yuan a growing force in global finance
Last Updated : GMT 20:59:29
Arab Today, arab today
Arab Today, arab today

China's yuan 'a growing force in global finance'

Arab Today, arab today

Arab Today, arab today China's yuan 'a growing force in global finance'

China's yuan
Washington - AFP

China's yuan is a growing force in global finance, more than doubling in use over the past year, according to a new study from the  Institute of International Finance Thursday.
Although its use in the international payments system remains dwarfed by the dollar and euro, the yuan, officially known as the renminbi, grew to 1.4 percent of total transactions.
That jump moved it ahead of the Hong Kong and Singapore dollars and even with the Swiss franc, the sixth most used currency in global transactions, the IIF study said.
In trade finance, overwhelmingly dominated by the US dollar, the yuan jumped into second place last year ahead of the euro and the Japanese yen, comprising eight percent of transactions.
And despite Beijing's still firm controls on its use, the yuan has become the ninth most-traded currency on foreign exchange markets, the volume hitting $120 billion daily on average, compared with $34 billion in 2010.
The study by the IIF, a global association of leading banks, said the gains have come as Beijing slowly frees up the currency for international use.
There are clearing banks for yuan transactions now in five international centers: Hong Kong, Macau, Taiwan, Singapore and, since early this year, London, the world's leading foreign exchange center.
Yuan-denominated bonds, so-called dim-sum bonds, have jumped since the government first permitted their issue in Hong Kong seven years ago.
"While true internationalization would require much greater capital account liberalization, the Chinese government continues to take measured steps towards opening China's financial markets."
"Further gradual steps to widen the currency trading band --and a more market-determined exchange rate -- will help this process," the IIF said.
The use of the yuan is still much smaller than China's presence in the global economy: almost 12 percent of all global trade flows and 11 percent of capital flows.
Its 1.4 percent share of international transactions is far below the euro's 42.5 percent and the dollar's 31 percent.
The government continues to keep a firm hand on its use, in part not wanting to release its control on the key yuan-dollar exchange rate.
The United States has repeatedly accused China of keeping the yuan undervalued to enhance its export strength, exacerbating the huge US trade deficit with China.
Beginning in 2010 the yuan strengthened from 6.83 per US dollar to 6.05 per dollar last year, but has since fallen back to 6.2, despite ongoing US pressure over the valuation.
Ironically, China's fast economic growth and the US pressure had until recently helped limit the growth of the yuan in offshore lending. International deposits of the currency amount to 1.5 trillion yuan, or $240 billion, but yuan loans are minimal.
The IIF said that was because yuan interest rates were high and, until recently, investors held onto the currency in expectation of steady yuan appreciation.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinas yuan a growing force in global finance Arab Today, arab today chinas yuan a growing force in global finance

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinas yuan a growing force in global finance Arab Today, arab today chinas yuan a growing force in global finance

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday