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China's yuan becomes world's fifth global payments currency

China’s economy is the second largest in the world, but can its currency, renminbi, compete with the US dollar as a global currency?

In fact, yuan broke into the world’s top five as payment currency in November 2014, leaping from 13th place in January 2013, Reuters reports. Quoting a Belgium-Based cooperative agency, SWIFT, Reuters says the yuan (also known as “renminbi”, literally “people’s currency”) has overtaken the Canadian dollar and the Australian dollar.

“It confirms the yuan’s transition from an emerging to a “business as usual” payment currency”, SWIFT said in a statement, according to Reuters.

However, according to data from Bloomberg, with a share of 2.17 % of global payments in December, there is still a long way to go for the yuan to catch up with the US dollar, which accounted for 44.6% of global payments.

See also:

http://www.oecd.org/china