Chinese Yuan Surpasses Euro as Second Most-Used Currency in Global Trade
The Chinese yuan has overtaken the euro to become the second most-used currency in global trade finance, with its share rising to 5.8% in September 2023. This increase is driven by favorable borrowing conditions and a surge in yuan-denominated bond issuances, such as panda and dim sum bonds. The shift aligns with China's strategy to internationalize its currency, although the yuan still trails behind the US dollar, which dominates global trade finance. The yuan's rise is particularly notable among developing countries, especially those involved in the Belt and Road Initiative.
DRM News
Chinese Yuan Surpasses Euro as Second Most-Used Currency in Global Trade
The Chinese yuan has overtaken the euro to become the second most-used currency in global trade finance, with its share rising to 5.8% in September 2023. This increase is driven by favorable borrowing conditions and a surge in yuan-denominated bond issuances, such as panda and dim sum bonds. The shift aligns with China's strategy to internationalize its currency, although the yuan still trails behind the US dollar, which dominates global trade finance. The yuan's rise is particularly notable among developing countries, especially those involved in the Belt and Road Initiative.
#ChineseYuan #GlobalTrade #Finance #Currency #Economics #PandaBonds #DimSumBonds #BeltAndRoad
1 month ago | [YT] | 37