The latest SWIFT RMB Monthly Tracker, the report monitoring the Chinese yuan adoption across the globe, was published earlier today, showing that the Chinese currency lost one place in the ranking of international payments currencies.
The SWIFT report for September 2015 shows that the Chinese currency fell back to position #5 in the ranking table of currencies for international payments by value. This comes just a month after the RMB ranked #4, overtaking the Japanese yen.
In September 2015, the RMB accounted for 2.45% of global payments,marking a decrease from 2.79% in August 2015. SWIFT data also shows, however, that the RMB’s underlying growth remains positive. In September 2015, the RMB activity share was higher than in July 2015 and the preceding months.
“Last month’s RMB tracker showed a spike in RMB utilisation, elevating the currency to the #4 position worldwide,” says Michael Moon, Head of Payments, Asia Pacific at SWIFT. “Whether the RMB sits at position #4 or #5, what is important to note is the underlying growth of the currency, which is trending positive. Such a trend is supported by an increasing number of corporates adopting the RMB for trade settlement and a rising number of banks supporting those payments.”
Moon adds, “Continued improvements in RMB processing through use of international standards and enhancing the services offered by financial institutions will also continue to strengthen the RMB and its role as an international payments currency.”
Overall, global RMB payments decreased in value by 5.57% in September 2015, whilst in general all payments currencies grew by 7.56%.
Chart source: SWIFT Watch.
Chart source: SWIFT Watch.
The full report by SWIFT can be viewed by clicking here.