15 more countries are using renminbi (Rmb) for at least 10% of their payments with China and Hong Kong than 18 months ago, bringing the total number of countries that have successfully “crossed the Rmb river” to 50, says Swift.
Set by Swift as a way to measure the value of Rmb payments with China and Hong Kong when compared with other currencies, the 10% benchmark indicates the level of Rmb adoption globally.
According to data collected by Swift, the Rmb is now used for 11.2% of total payments in value exchanged with China and Hong Kong, up from 6.2% in April 2013. Germany is one country that has significantly increased its Rmb usage: by 151% during the period.
The Rmb is now used for 11.2% of total payments in value exchanged with China and Hong Kong, up from 6.2% in April 2013.
A statement published by Swift suggests that payments in the currency by Canada and Malaysia, in particular, are expected to grow even further than their respective 346% and 48% increases, thanks to currency swap deals and memorandums of understanding to establish Rmb clearing hubs.
“Most of the growth in Rmb usage is from early adopters and main Rmb clearing centres, such as Singapore and the UK,” says head of business intelligence at Swift, Astrid Thorsen. “Increasingly however, new countries such as Germany, Australia, Malaysia, Indonesia and Sweden are contributing to the Rmb’s growth.”
“Canada’s Rmb usage for payments in particular is very interesting since we have not seen strong adoption of the Rmb from North America to date.”