RMB now sixth most used currency for global payments

According to recent SWIFT data, the RMB was now in the top six of world payment currencies by value with a share of 1.67%.

First Published: e-Forex Magazine 74 / Regional eFX Perspective / December, 2016

Just three years ago, in August 2013, the RMB was ranked at position #9 with a share of 0.84%. In the last three years, the RMB overtook several currencies, including the SEK, HKD and CHF. Despite the fact that RMB is in the top six currencies the gap compared to JPY remains high and it is difficult to predict if and by when the RMB might move to a higher position. It overtook JPY with a record high share of 2.79% in August 2015 then fell back, likely due to the devaluations of the RMB that took place in that month. As from then, the RMB usage has been negatively impacted by the volatility in the Chinese market and the slow-down of Chinese economy. Overall, in the month between July and August 2016, global RMB payments increased in value by 4.81%, while payments across all currencies increased in value by 7.21%. Asia-Pacific, and more precisely Hong Kong, is still by far the leader in offshore RMB payments. The next biggest contributor to global RMB payments by value is Europe, with the United Kingdom...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here