Foreign exchange in ChinaThe U.S. dollar is still the most traded currency in China’s foreign exchange market, followed by the euro and the yen. In terms of transactions, foreign exchange market has already become the second largest investment market in China after the stock market. The common trading way of foreign exchanges in China is firm offers through commercial banks, while margin trading is still not allowed in China.
Due to China’s large volume of foreign exchange reserves and fast-growing share in international trade, RMB’s credibility is also increasing and becomes one of the most commonly used payment currencies. A growing number of currencies can be now directly exchanged with RMB without the change to U.S. dollars first. And some of the world’s major oil exporters are also accepting RMB as oil settlement.