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The latest edition of RMB Tracker by SWIFT is out, showing once again the resilient demand for Chinese Yuan when it comes to international payments.
The report shows that 2.07% of the global payments in April 2015 were conducted in RMB, thus allowing the currency to maintain its fifth position in the ranking of world payment currencies. The yuan took that position for the first time in November 2014 and is still there, lagging behind the USD, EUR, GBP and JPY.
Not surprisingly, Asia Pacific is leading the way when it comes to RMB adoption for payments. The latest RMB Tracker shows that the value in weight of the RMB used for payments exchanged with China and Hong Kong within Asia Pacific surged by 327% between April 2012 and April 2015. During this three-year period, the yuan moved from position number five to the number-one position amid currencies used in Asia Pacific to do business with Greater China.
SWIFT estimates that on average about 31% of payments in Asia Pacific with China and Hong Kong are now made in RMB, 7% higher than in April 2012. During the three-year period, most Asian countries moved from being low users (under 10% RMB) to medium users (between 10% and 50%). Currently, out of the 26 countries within the region that use RMB for direct payments with China and Hong Kong, 9 are considered low users compared to 19 in 2012. Six countries are now assessed to be high users of RMB.
“Asia Pacific is clearly paving the way forward when it comes to RMB adoption,” commented Michael Moon, Head of Payments Asia Pacific at SWIFT. “Big trading partners like Singapore, Taiwan and South Korea have adopted the RMB for the majority of their payments with Greater China. The new appointments of four clearing centres (South Korea, Malaysia, Thailand and Australia) within the region should also have a positive impact on RMB adoption, solidifying the important role of the currency within Asia Pacific and abroad.”
To view details about the latest SWIFT RMB Tracker, click here.