China's yuan Take Its Position in the Top Five Currencies That is Used the Most, Globally

China's yuan Take Its Position in the Top Five Currencies That is Used the Most, GloballyOn Wednesday, Society for Worldwide Interbank Financial Telecommunication (SWIFT), the global transaction services organisation said that in November the Chinese yuan has won its place in the five topmost payment currencies used in the world. The yuan has overtaken the Canadian dollar as well as the Australian dollar to make its way to the list of the top five.

The yuan, after holding the seventh position for almost one year, has now reached a share of a record high 2.17 percent in global payments by value. It is now in competition with the Japanese yen that has a 2.69 percent share in the global market.

The top three spots are occupied by the US dollar, euro and the British pound. The U. S. dollar, which sits at the top spot, has a share of about forty five percent. In a statement, SWIFT's head of banking markets, Wim Raymaekers said, that the change is an "important milestone," and proves that the yuan is changing from an 'emerging' into a "business as usual" currency.

China is slowly reducing controls on its yuan and encouraging the businesses to use it in the foreign markets in an attempt to decrease costs for the country's traders and also to augment the role of Chinese companies in the global economy.

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