Yuan overtakes Euro in global trade finance - SWIFT

BEIJING - The yuan has surpassed the euro to become the world's second-most widely used currency in global trade finance, according to data released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The yuan captured an 8.66% share of letters of credit and collections in October, while the euro's was 6.64%, according to SWIFT.

 In January 2012, the yuan's share of global trade finance was just 1.89% to the euro's 7.87%. The US dollar led all currencies with an 81.08% share of letters of credit and collections in October, down from 84.96% in January 2012. The Chinese mainland, Hong Kong, Singapore, Germany and Australia were the top users of yuan in trade finance.

The Chinese Government’s efforts to open up the financial sector and internationalise the yuan have increased use of the currency. China and the UK are tol begin direct trading between the yuan and the British pound, and the People's Bank of China and the European Central Bank have signed a bilateral swap agreement for RMB 350 billion.