One third of the world’s financial institutions (FIs) are actively using the renminbi (RMB) for payments to China and Hong Kong, reports SWIFT.
The financial messaging services provider’s latest RMB Tracker shows that over the past two years, RMB payments worldwide have nearly tripled in value. In addition, the RMB is now supported by a much broader base with 35% more FIs using the RMB for payments with China and Hong Kong.
With one third of FIs around the world now using the RMB for payments to China and Hong Kong, Asia leads the way at nearly 40% adoption, with an increase of +22% since 2012. The Americas follows at 32% adoption with an increase of +44%.
Europe follows closely behind the Americas at 31% adoption with an increase of +47%, and the Middle East and Africa is at 26% adoption, with an increase of +83% during the same two-year period.
“It is encouraging to see that RMB usage by FIs and corporates is steadily growing,” said Stephen Gilderdale, head of new business development at SWIFT. “More FIs using the RMB will improve the utility of the currency in Hong Kong, China and other offshore centres.
“As the currency continues to grow, opportunities will arise leading to the development of new products and services denominated in RMB. These new products and services will help drive greater use of the RMB globally while making it a more efficient currency to manage.”
Overall, the RMB strengthened its position last month as the seventh-ranked global payments currency and accounted for 1.64% of global payments, an increase from 1.57% in July. In August, the value of RMB global payments decreased by 6%, while all currencies dropped by 10%; a trend SWIFT believes is most likely attributable to lower seasonal payments activity.
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