Mastrerforex-V Academy reports that the TOP 5 of the world’s most popular currencies has changed so far. In particular, as of early March, the Chinese Yuan left the chart. The thing is that a couple of days ago, the Society for Worldwide Interbank Financial Telecommunications (SWIFT) released its report on he world’s most popular global currencies in international transactions.
The updated report shows that the Renminbi is no longer on the list. What are the reasons?
For starters, the situation looks pretty logical to international experts. The latest economic reports coming from China indicate relative economic stability of the Asian dragon. As for the mentioned fact that Renminbi lost a bit of its ground in the international arena of financial transactions, this has to do with the fact that China celebrated Chinese New Year for the last 2 weeks of February, which caused a sharp decline in Renminbi-denominated transactions.
For now, the experts report that the Chinese Yan managed to stay in the mentioned TOP 5 for only 3 months. The Renminbi managed to move up from the 7th to the 5th place in the chart in November 2014, when it outpaced the Canadian and Australian Dollar.
Throughout the winter, the Renminbi used to share the TOP5 with such currencies as the U.S. Dollar, the common European currency, the British Pound and the Japanese Yen.
In January 2015,the Renminbi’s share in international financial transactions dropped down to 2,065 of the total volume. Despite the fact, the Chinese Yuan still remained in the TOP5 through the reporting period. As of February, the Chinese national currency saw a further drop down to 1,8%, which ousted it from the top chart.
In early March, the People’s Bank of China commented on the situation. The president of the central bank expressed its hope that the government should toughen the money-and-credit policy in order to make the structural reforms more efficient. At this point, the Chinese government is trying to ease the control over the capital flows and to implement an easy regulation policy in order to make the renminbi a freely convertible currency.
As for the USD/CNY currency pair, it is being highly volatile as the result of reacting to the current situation in the global geopolitical arena. By the way, Masterforex-V Academy says that the relatively high predictability of USD/CNY coupled with its high volatility is the key reason why it enjoys considerable popularity among Forex traders these days.
