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Chinese Yuan use in global payments rises 13% from previous month to new record - National Finance Examiner | Examiner.com
October 30, 2014
For more than 40 years the dollar has served as the primary reserve currency and largest singular medium for trade in the global economy. But as the world begins to reject the dollar in light of years of devaluation and its use an economic weapon, one currency is beginning to accelerate its acceptance in direct trade, and that is the Chinese Yuan.
On Oct. 29, a new report came out which announced that China's use of the Yuan in global payments rose over 13% from the previous month to 1.72%, and is expected to rise much higher in light of a new agreement made earlier this week between themselves and Singapore to facilitatedirect trade using each nation's own currencies, thus bypassing the dollar completely.
In less than one year, use of the Yuan to function as a primary trade currency has risen over 72%, and has lifted China from 13th in the world to now being in the top 10 where they are expected to reach a top five ranking very quickly.
The rise of the Yuan as a viable and accepted currency for global payments has been swift, with more than 23 nations implementing new currency swap lines through October of 2014. This means that the Yuan is ready to fully float as an international trade currency and has gained massive support through Hong Kong's choosing to peg its currency to the Yuan after decades of being tied to the dollar.
Europe is also quickly migrating over to the Yuan as nations in the EU vie for a larger share of China's international banking. Britain recently became the first nation to recognize and sell a Chinese bond on the open market which will only increase the number of investors helping to grow and build the future of China's economy.
As the European and American banking systems continue to reside in a mire of debt and need for even more money printing to remain solvent, acceptance of a new currency for international trade is quickly rising in the East. And with many of the major Eastern economies like Russia, Singapore, and Hong Kong all turning towards China, and away from the U.S. and Europe, global use of the Yuan for international trade will continue to put pressure on dollar hegemony and eventually bring about a global demand for a look towards a new reserve currency that includes the Chinese Yuan.
October 30, 2014
For more than 40 years the dollar has served as the primary reserve currency and largest singular medium for trade in the global economy. But as the world begins to reject the dollar in light of years of devaluation and its use an economic weapon, one currency is beginning to accelerate its acceptance in direct trade, and that is the Chinese Yuan.
On Oct. 29, a new report came out which announced that China's use of the Yuan in global payments rose over 13% from the previous month to 1.72%, and is expected to rise much higher in light of a new agreement made earlier this week between themselves and Singapore to facilitatedirect trade using each nation's own currencies, thus bypassing the dollar completely.
In less than one year, use of the Yuan to function as a primary trade currency has risen over 72%, and has lifted China from 13th in the world to now being in the top 10 where they are expected to reach a top five ranking very quickly.
The rise of the Yuan as a viable and accepted currency for global payments has been swift, with more than 23 nations implementing new currency swap lines through October of 2014. This means that the Yuan is ready to fully float as an international trade currency and has gained massive support through Hong Kong's choosing to peg its currency to the Yuan after decades of being tied to the dollar.
Europe is also quickly migrating over to the Yuan as nations in the EU vie for a larger share of China's international banking. Britain recently became the first nation to recognize and sell a Chinese bond on the open market which will only increase the number of investors helping to grow and build the future of China's economy.
As the European and American banking systems continue to reside in a mire of debt and need for even more money printing to remain solvent, acceptance of a new currency for international trade is quickly rising in the East. And with many of the major Eastern economies like Russia, Singapore, and Hong Kong all turning towards China, and away from the U.S. and Europe, global use of the Yuan for international trade will continue to put pressure on dollar hegemony and eventually bring about a global demand for a look towards a new reserve currency that includes the Chinese Yuan.
