Yuan becomes 5th most traded currency, helped by sanctioned Russia

Nikkei Asia ^

[FarCenter]

SHANGHAI/TOKYO -- China's yuan has jumped to fifth place in currency transactions, new data shows, as the country's economic expansion increases trade and sanctions-hit Russia turns to the Chinese market.

The yuan's average daily turnover in April came to $526 billion -- up 85% from the same month of 2019, according to data published by the Bank for International Settlements.

The Chinese currency accounted for 7% of overall transactions, up 2.7 percentage points. The sum of percentage shares totals 200% because two currencies are involved in each transaction. The yuan trailed only the dollar, the euro, the yen and the pound.

The yuan, which ranked No. 8 in terms of share in April 2019, surpassed the currencies of Australia, Canada and Switzerland in the new ranking.

The BIS releases data on over-the-counter foreign exchange turnover every three years based on reports from central banks around the world.

[SteveH]

WINNING

/s

[C19fan]

I believe China is trying to do more international transactions without dollars especially with pariah countries like Russia and Iran. As long as China continues to place restrictions on the yuan its use as a reserve currency is limited.

[C19fan]

As a comparison, the daily foreign exchange turnover of the US $ is over $5 trillion a day.

[WMarshal]

This is the end stage of life for the petrodollar thanks to communist Democrats and bloodthirsty Neocons.

Thanks for these idiots it’s gonna be a rough ride.

[FarCenter]

From the article: The dollar has the highest turnover in the BIS data for April, with an average daily amount of $6.64 trillion. Its share rose only slightly from the 88.3% of three years earlier. The yen's share dropped 0.1 point to 16.7%.

Note that dollar foreign exchange flows are mostly related to financial flows, rather than real-world trade in goods and services which is much, much smaller. It totaled ony $28.5 trillion for the entire year 2021.

Global trade hits record high of $28.5 trillion in 2021, but likely to be subdued in 2022

https://unctad.org/news/global-trade-hits-record-high-285-trillion-2021-likely-be-subdued-2022

[escapefromboston]

I have read that America has sanctioned about 1/3rd of the entire world’s population. That’s not sustainable in the long run.

[delta7]

Up next- Sovereign cashless digital currency. Biden’s rush to it is the nail in any “ free” nation.