RMB falls back to position #5 as an international payments currency
According to SWIFT data, the RMB has dropped a position in the currency rankings for international payments, whilst underlying growth remains positive.
Brussels, 29 October 2015 - SWIFT's latest RMB tracker shows that the Chinese currency fell back one place to position #5 in the ranking table of currencies for international payments by value. In September 2015, the RMB accounted for 2.45% of global payments, a decrease from 2.79% in August 2015. SWIFT data also shows, however, that the RMB's underlying growth remains positive. In September 2015, the RMB activity share was higher than that of July 2015 and the preceding months.
"Last month's RMB tracker showed a spike in RMB utilisation, elevating the currency to the #4 position worldwide," says Michael Moon, Head of Payments, Asia Pacific at SWIFT. "Whether the RMB sits at position #4 or #5, what is important to note is the underlying growth of the currency, which is trending positive. Such a trend is supported by an increasing number of corporates adopting the RMB for trade settlement and a rising number of banks supporting those payments."
Moon adds, "Continued improvements in RMB processing through the use of international standards and enhancing the services offered by financial institutions will also continue to strengthen the RMB and its role as an international payments currency."
Overall, global RMB payments decreased in value by 5.57% in September 2015, whilst in general all payments currencies grew by 7.56%.
About SWIFT and RMB Internationalisation
Since 2010, SWIFT has actively supported its customers and the financial industry regarding RMB internationalisation through various publications and reports. Through its Business Intelligence Solutions team, SWIFT publishes key adoption statistics in the RMB Tracker, insights on the implications of RMB internationalisation, perspectives on RMB clearing and offshore clearing guidelines, supports bank's commercial RMB product launches and provides in-depth analysis and business intelligence, as well as engaging with offshore clearing centres and the Chinese financial community to support the further internationalisation of the RMB.
The SWIFT network fully supports global RMB transactions, and its messaging services enable Chinese character transportation via Chinese Commercial Code (CCC) in FIN or via Chinese characters in MX (ISO 20022 messages). It offers a suite of dedicated RMB business intelligence products and services to support financial institutions and corporates. In addition, SWIFT collaborates with the community to publish the Offshore and Cross-Border RMB Best Practice Guidelines, which facilitate standardised RMB back office operations.
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