RMB Usage Sees Decline in October, Falls to Sixth Most Utilized Currency

SWIFT, a global provider of financial messaging services, has released its monthly compilation of data as part of its renminbi (RMB) tracker, with October 2016 showing an erosion of RMB usage and a strengthening of the euro.

While the RMB has shown steadfast growth in recent years, its usage in international trade finance has slipped slightly in the 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 realm, with RMB usage by value declining to the third-most utilized currency – the top two remain the euro and USD in first place.

Since the RMB tracker’s inception in 2011, the RMB has certainly orchestrated a rise in value, though it had peaked at the number two most utilized currency back in 2013, with a share of 8.66%. However, since October 2012, trade finance values in the RMB have decreased by a factor of -66.0%, while trade finance across all currencies decreased in value by 35%.

The latest findings run counter to a recent uptick in RMB usage seen last month in September, in which the Chinese currency had been gaining traction in several Asian and Latin American (LATAM) countries. Overall, the RMB now retains the sixth slot globally, losing its place to the Canadian dollar (CAD). The total vaue of RMB payments decreased by 22.44% compared to September 2016, whilst in general all payments currencies decreased by only 5.96%.

According to Michael Moon, Head of Payments Markets, Asia-Pacific (APAC) Asia-Pacific (APAC) The Asia-Pacific (APAC) region is one of the fastest growing in terms of population. This region in particular is of great importance to the financial services industry, as it is seen as the largest growth market for clients.APAC is comprised of diverse currency markets that are shaped by various and, at times, competing forces, from global regulation to local capital controls.The region has been seen as one of the hardest to enter by FX brokers for this reason, as well as grappling cultural or The Asia-Pacific (APAC) region is one of the fastest growing in terms of population. This region in particular is of great importance to the financial services industry, as it is seen as the largest growth market for clients.APAC is comprised of diverse currency markets that are shaped by various and, at times, competing forces, from global regulation to local capital controls.The region has been seen as one of the hardest to enter by FX brokers for this reason, as well as grappling cultural or Read this Term), SWIFT, in a recent statement on the tracking info: "The general slowdown of the Chinese and world economies over the past few years has impacted global trade growth across all currencies, not just the RMB. For example, commodities trade growth has been declining as evidenced by the reduction of documentary trade.”

“On a positive note, the inclusion of the RMB in the Special Drawing Right (SDR) basket should generate further trust and confidence in the RMB currency and support further RMB internationalization,” he added.