SWIFT has published its latest monthly report of the renminbi Tracker, showing changes in the international use of the currency of the most populous country in the world.
According to the report, the renminbi gained some share again around the world as a global currency, during the month of January 2016. Nevertheless, it still remains as the No. 5 in the ranking. The renminbi reached 2.45% of global payments during the first month of this year, rising mildly from December 2015, when it hit 2.31% from all the reported global transactions. Although it seems optimistic, it is still far away behind the world’s No. 4 currency – the Japanese yen, whose international share reaches 3.07% from all the payments. Moreover, the renminbi share in the international payments is higher over the month, but payments dropped 5.7% in value, while at a global level, all currencies declined by 11.2% in value over the same period.
According to the SWIFT report, the top three international payments currencies during the month of January were:
USD – 42.96%;
EUR – 29.43%;
GBP – 8.66%.
As the report shows, the top user of renminbi during the first month of this year was Malaysia, with its use of the China’s currency jumping 68% over the previous 12 months (and even 214% over the last three years). During this above-mentioned period, renminbi was even able to surpass the national currency of Malaysia (Malaysian Ringgit) and move from the position No. 3 to the second most actively used currency in Malaysian payments by value.
According to Michael Moon, Head of Payments, Asia-Pacific at SWIFT:
“Despite volatility in China, and widely reported economic slowdown, the South-East Asian markets, such as Singapore, Thailand and Malaysia, have been enhancing RMB payment capabilities, including the establishment of RMB clearing centres. This growth reflects the extensive trading relationships between South-East Asia and China, which continues to be very important for the region”.
For any questions or recommendations, feel free to write us on hello@goforex.eu
