RMB’s Share of Global Trading Doubles in Three Years: BIS
Currency analysts and RMB trackers are predicting the RMB will take fourth spot by 2020.
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China’s yuan has doubled its share of global currency trading in the three years through April 2016, according to the latest triennial survey conducted by the Bank for International Settlements.
The yuan’s average daily turnover rose to $202 billion in April from $120 billion in the same month of 2013, boosting its ratio of global foreign-exchange trading to 4 percent from the previous 2 percent, the survey results show. That puts the currency in eighth place overall. Dollar-yuan became the sixth-most traded currency pair, advancing from ninth place in 2013, BIS said, while the yuan overtook the Mexican peso as the most actively traded emerging-market currency.
The survey polled central banks and other authorities in 52 jurisdictions, with data from almost 1,300 banks and other dealers, BIS said. The dollar increased its lead as the most-traded currency with 88 percent of deals, up a percentage point from three years ago. The euro remained No. 2, though its share fell to 31 percent. Yuan transactions in both the onshore and overseas markets were –
The Bank for International Settlements report comes a month before the yuan is scheduled to join the dollar, euro, British pound and Japanese yen in the International Monetary Fund’s basket of global reserves.
– Bloomberg on finance.yahoo.com