CNY still stays behind the USD (which had a 38.75% share in worldwide payments in January 2014) as well as the EUR, GBP, JPY, CAD and AUD.
The market share of CNY was 1.39% in January 2014, putting it in the top 10 most-used currencies in global payments for the third consecutive month. It moved up from eighth place in December 2013.
China’s currency is not freely convertible, but the government is gradually moving towards convertibility so that the unit might one day rival the USD.
Earlier in February 2014, Chinese authorities relaxed restrictions on cross-border CNY payments for trade on a trial basis in its new free-trade zone in Shanghai.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) stated in December 2013 that China’s CNY had overtaken EUR to become the second most-used currency in international trade finance.
In recent news, The Chinese authorities deliberately decreased the CNY market value on the 28th of February 2014 in order to counter attack the wave of speculators who bet on the Chinese currency as a winning ticket.
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