China's Yuan has continued its weak performance against the US dollar. Wednesday's spot market saw a decline close to the two percent trading band set by the central bank. That's good news for exporters. They could sell their products more cheaply--and that helps cement the yuan's position as a global currency.
According to global transaction services organization SWIFT, China's yuan has become one of the top five most used currencies in the world. The yuan is now in sight of the Japanese yen, with the US dollar, euro and British pound remaining the top three.
An important driver fueling this growth is the rise of offshore yuan clearing centers around the world. Eight new agreements were signed last year. The trend is expected to continue in 2015. Last week, Switzerland and China agreed to establish a yuan clearing center in Zurich.