Renminbi Series: Yuan’s share in global transactions decline

According to latest report from SWIFT, well known global bank payment messaging network, share of Yuan in global transactions have declined in April. Yuan’s rise in global payment system has been quite dramatic and it gained sharply in its share, however, since last year, especially August, which saw sharp devaluation in Yuan, its share has somewhat slipped.

Back in January, 2012, Yuan ranked 20th among global currencies, accounting for just 0.24% of all transactions. By January, 2013, it rise to the rank of 13th accounting for 0.63% of all transactions. According to SWIFT’s January, 2014 report, Yuan has risen further towards rank 7, accounting for 1.39% of all transactions. Last year it toppled Yen for some period and became the fourth most used currency in transactions, accounting for 2.79% of all transactions. But after August devaluation and January turmoil this year, it has been losing its share. In April, it accounted for just 1.82% of all transactions, down from 2.45% at start of the year.

Its rank has slipped from fourth to sixth.

This is a clear setback signal for internationalization of Yuan.

Yuan is currently trading at 6.56 per Dollar, and we at FxWirePro expect 8-10% depreciation further.