The official currency of China, yuan, is counted among the most traded currencies for the first time, underlining that the growth can lead to the betterment of the country. In 2013, yuan became one of the top ten trading currencies and rose to number 9 on the list.
This happened due to a significant expansion in offshore trading, according to the Bank for International Settlements' report on September 5, 2013. This is also an increase compared to the last survey conducted in 2010, when it was at No. 17 on the list. In April 2013, turnover in trades surged to $120 billion per day on an average, which is three and half times more than the $34 billion in 2010. The figure has been dwarfed by the dollar and has accounted for about $4.7 trillion per day.
The Bank for International Settlements said that the Chinese yuan – with the Mexican peso – rose to No. 8 and saw the most significant rise in the market share among the major emerging market currencies. The leaders in China want the Chinese yuan to become an international currency and have been promoting its use as an alternative to the American dollar.
For now, the Chinese yuan is not fully convertible, but Beijing has been gradually loosening controls.
Photo Credits: CDN