Search This Site:

Friday, 23 December 2011

Yuan denominated international trade increases thirteenfold

Use of the Chinese yuan for international trade settlement is now thirteen times larger than in 2010.  Diversification away from the US dollar is increasing, as its role as the global reserve currency starts to decline.

Yuan denominated international trade settlements reached $US92 billion in the September, 2011, quarter.  China has directed that ten per cent of all cross border trade be denominated in yuan.  That target has been exceeded.

I acknowledge Joanna Heath's article "Chinese yuan gets a leg-up as Fortescue writes contract", on p33 of the Australian Financial Review, Dec 22-27, 2011.