This article is a summary of China's Yuan becoming increasingly global. Nearly two years ago the first transaction to ever occur in the UK that was paid for with Yuan occurred. This transaction was by Neill Tools in the UK to make a cross-border payment, which was initially assisted by the HSBC. As a result of this transaction the UK now holds 35 billion Yuan which is typically used by companies like Neill Tools who choose to pay their suppliers in that currency, which was unheard of previously. The article also entails that China is making a push to spread their currency globally, which is currently being dominated by Hong Kong, but is now making much progress in the UK. Also according to the article, the reasoning behind the UK's sudden interest in trading the yuan is in hopes of increasing incentives for China to trade with the UK, and this would provide them with a new avenue.
I found this article to be particularly interesting because it relates very closely with what we talked about on Friday in terms of the markets for foreign currency. One of the many functions of money is to store value, and as no surprise their are certain types of currency that are better for storing money, and in some cases that actually cause the value of your money to increase. For example, if you have a large amount of money in a currency from a small, unstable country like one in central Africa, then it would be more beneficial to invest that money in a more substantial currency like the euro, dollar, or now (in reference to the article) the yuan in order to protect this money from losing its value. Or to invest it in a market for these currencies that is likely to increase due to exchange rates.
http://www.bbc.co.uk/news/business-18149651
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