The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
The yuan leaped over the Australian, Canadian and Swiss currencies to become the fifth most traded currency in the world, according to the Bank for International Settlements’ Triennial Central Bank Survey.
The Chinese currency was involved in 7% of all trades in 2022, compared with 4% three years ago, Basel-based BIS said in a report. Meanwhile, total daily trades rise 14% to $7.5 trillion.
The dollar maintained its decade-long place as the world’s most traded currency, accounting for one side of 88% of all transactions. The euro, yen and pound also held their spots in the top four.
The yuan is becoming a more important global currency as China takes steps to open its financial markets. This is reflected in an increase in yuan cross-border settlements as well as a higher share of yuan among global FX reserves.
The BIS collected data from more than 1,200 banks and dealers in 52 jurisdictions. Russia, which accounted for less than 1% of the global total in 2019, was excluded this year.
Meanwhile, China’s 10-year government bond yield have dropped to 2.69% this week, the lowest in about a month.
—Bloomberg