Slowly but surely the Chinese currency is catching up to the world’s reserve and moments ago, according to SWIFT, the Yuan just surpassed the Euro in trade (remember trade: that’s how countries once upon a time would generate capital flows in a time when central banks weren’t there to literally print domestic funding needs) finance usage leaving just the USD in front.
- YUAN OVERTAKES EURO IN TRADE FINANCE USAGE: SWIFT
- YUAN IS SECOND MOST-USED CURRENCY IN TRADE FINANCE: SWIFT
More from Bloomberg:
- Chinese currency had 8.66% share in letters of credit and collections, or trade finance, in Oct., Society for Worldwide Interbank Financial Telecommunications says in statement today.
- Euro’s shr in trade finance was 6.64% in Oct.
- Top 5 countries using yuan for trade finance in Oct. were China, Hong Kong, Singapore, Germany and Australia
- Yuan mkt shr in global payments was 0.84% in Oct. vs. 0.86% in Sept.
- Yuan payments value rose 1.5% in Oct. vs. 4.6% growth for all currencies: Swift
And so while the “developed” world is busy crushing its fiat through trillions in annual currency dilution and debasement in an attempt to make its exports cheaper and outtrade its peers through beggar thy neighbor policies (not to mention inflate away its debt), the leader of the “emerging” world, China, is doing just that.
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/TnX2PEWRXbA/story01.htm Tyler Durden