Encoding in XML

My development partners who actually build a web portal would like to recycle the titles, button names etc. used in my mockups.
The encoding used in the XML for chars like áéíóőű looks similar to URL encoding (%20 for space is an identical code), but the online tool http://meyerweb.com/eric/tools/dencoder/
cannot decode the text of the mockup xml's.
Can I get accurate information about the encoding used in the XML? Online Help and the forum seems to lack the info.
 
silly I’m unsure
Inappropriate?
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