Germany Wants To Beat UK to Becoming a Yuan Trading Hub

Use of the Chinese yuan in Germany and the U.K. has more than doubled over the last year, as London and Frankfurt fight to become the go-to place for trading the currency in Europe.

Yuan payments in the U.K. and Germany surged 123.6 percent and 116.0 percent respectively in the year to July 2014, according to new data from Swift, a financial messaging service.

“Over the past year, Chinese authorities and financial institutions announced new partnerships with European countries, making them official clearing centres for the renminbi (RMB). These announcements have boosted the RMB trading activities in these countries,” said Michael Moon, head of payments and RMB for Asia Pacific at Swift, in a press release.

Renminbi is the official name of the Chinese currency. Yuan is the name of one unit of the renminbi currency.

China is working hard to establish the yuan as a key currency for international trade, while keeping it under relatively tight control. In recent years, the government has struck major foreign-exchange swap deals—agreements to exchange one currency for another at a set rate at a certain time in the future—including with the euro zone, the U.K. and latterly, Switzerland.

“Announced in July, the bilateral currency swap agreement between the People’s Bank of China and the Swiss National Bank could put Switzerland in line to become a new RMB hub in Europe,” said Moon.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza