RMB now 2nd most used currency in trade finance, overtaking the Euro
Brussels, 3 December 2013 - Recent SWIFT data shows that RMB usage in traditional trade finance - Letters of Credit and Collections - grew from an activity share of 1.89% in January 2012 to 8.66% in October 2013, propelling the RMB to the second most used currency in this market. It ranks behind the USD, which remains the leading currency with a share of 81.08%. The RMB overtook the Euro, which dropped from 7.87% in January 2012 to 6.64% in October 2013 and is now in third place. The top 5 countries using RMB for trade finance in October 2013 were China, Hong Kong, Singapore, Germany and Australia.
"The RMB is clearly a top currency for trade finance globally and even more so in Asia, as shown by SWIFT's business intelligence statistics on the pace at which China's exporters and importers and their counterparts use the RMB for Letters of Credit", says Franck de Praetere, Head of Payments and Trade Markets, Asia Pacific, SWIFT.
In October 2013, the RMB remained stable in its position as the #12 payments currency of the world, with a slightly decreased activity share of 0.84% compared to 0.86% in September 2013. Overall, RMB payments increased in value by 1.5% in October 2013, whilst the growth for all payments currencies was at 4.6%.
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,000 banking organisations, securities institutions and corporate customers in 212 countries and territories. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.
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