Positive momentum expected to pave road ahead for Rmb internationalisation
According to SWIFT data, the UK continued to expand its renminbi payments capabilities, whilst other countries, including Singapore, showed signs of decline. November 27, 2012 | Magessan RajAccording to a recent report by SWIFT, use of the renminbi declined for the second consecutive month in October 2012, leading to the Chinese currency being demoted to 16th in the world currency payments table, a fall of two places from September 2012. While payments in renminbi experienced a 10% reduction, London continued to increase its share of the offshore renminbi market, with UK payments rising by 3.9% while others declined – Singapore payments fell by almost 23%, cementing London’s position as the second-largest offshore renminbi trading centre after Hong Kong. Institutional transfers, as opposed to trade settlement, are main drivers for renminbi adoption, representing 98% of the total payments value for the UK and 94% for Singapore in October. While SWIFT’s latest renminbi study shed light on London as the second largest financial centre for renminbi payments, usurping Singapore, Standard Chartered Bank’s recently launched Renminbi Globalization Index (RGI) paints a different picture. An industry benchmark that aims to track the progress of renminbi-based business activity worldwide, RGI measures internationalisation of the Chinese currency using the parameters of offshore renminbi deposits, dim sum bonds and certificate of deposits, trade settlement and other international payments, as well as foreign exchange turnover. More significantly, Singapore was declared the world’s second largest offshore renminbi centre by RGI standards, as it accounted for 12% of business, trailed by London with 10%. Indeed, the battle for supremacy between both London and Singapore is expected to heat up as both seek to more effectively facilitate the offshore renminbi business. While Singapore has strategically moved to issue full banking licenses to Chinese banks (Bank of China and Industrial and Commercial Bank of China), opening up the possibility of an offshore renminbi clearing bank in the city state, London has also stepped up its own eff... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Rmb, Singapore, Transaction BankingChina,Rmb,Singapore,Transaction Banking, China,Rmb,Singapore,Transaction Banking, Keywords:SWIFT, Standard Chartered Bank, RGI, China International Payment Platform, China Construction Bank, Marios Maratheftis, London SWIFT, Standard Chartered Bank, RGI, China International Payment Platform, China Construction Bank, Marios Maratheftis, London
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