As the US spreads its message of cheer around the world, it appears an increasing number of trade 'partners' are more than willing to consider alternatives to the hegemony. As AFP reports, China's Yuan usage in global trade and finance has more than doubled this year. While still notably below USD usage in international payments it remains firmly in second place for trade finance and according to a recent survey by HSBC, the number of US companies planning to use Yuan has almost tripled this year (from 8% to 22%). De-dollarization continues...
As AFP reports,
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.
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 US$120 billion daily on average, compared with US$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 centres: Hong Kong, Macau, Taiwan, Singapore and, since early this year, London, the world's leading foreign exchange centre.
"While true internationalisation would require much greater capital account liberalisation, 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.
But it seems the world is warming increasinmgly to using the Chinese currrency...
Survey shows 17% of U.S. cos. used yuan to settle trade this yr, up from 9% last yr, HSBC says in statement.
Global average yuan usage was 22%, according to HSBC, which surveyed business leaders in 11 countries
26% of French cos. used yuan, the most outside China, Hong Kong and Taiwan, followed by 23% in Germany
Especially the US!!
22% of U.S. cos. said they aren’t using yuan but plan to do so within the next 6 mos. to 5 yrs, up from 8% a yr ago.
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Even US firms are de-dollarizing?