Renminbi Maintains 7th Spot in Global Payments, Closing in on Canadian Dollar

Data released in the Society for Worldwide Interbank Financial Telecommunication’s (SWIFT) latest Renminbi tracker report shows that the Chinese currency continues to strengthen its position as the seventh-ranked global Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term currency and currently accounts for 1.72% of global payments, which is yet another all-time record after last month's report.

In September 2014, the value of global payments made in Renminbi surged 13.2%, which was way higher that the average 8.1% growth for all currencies. The Chinese yuan has also gained market share in offshore centres turnover. Over the past two years, international Renminbi payments between ‘true’ offshore trading centres (which exclude China and Hong Kong) have grown by +837% in value compared to an overall growth of +378%, reaching a share of 3.25% in September 2014.

HSBC's Global Head of Renminbi Internationalization, Vina Cheung, commented, "The growth in Renminbi payments between offshore trading centres such as Singapore, UK and Germany is encouraging. We're seeing companies seize the opportunities presented by China's currency liberalisation to deepen business relationships in the world's second largest economy.”

“As China becomes ever more important to international businesses, the internationalisation of the RMB is creating new opportunities in trade, investment, cash management and funding,” she continued.

Mrs. Cheung shared with Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reporters, “HSBC forecasts that a third of China’s trade will be settled in RMB by 2015 and that the currency will be fully convertible by 2017. SWIFT's findings show that initiatives like the establishment of offshore hubs are supporting greater adoption of the Chinese currency to deliver financial and relationship advantages from using RMB."