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 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.
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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 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.”