US corporates stand to gain through participation in Rmb payments
Renminbi payments recorded continued growth in the UK and Singapore, but tapered off in the US due to persistence with payments in USD. January 29, 2013 | Magessan RajSWIFT’s January 2013 tracker showed that renminbi adoption by the US has proven disappointing thus far, and throughout 2012, pick-up of the Chinese currency was generally flat, with year-end figures trending downwards, pointing towards a major decline. From November to December 2012, the US experienced a 38% decrease in renminbi payments, dropping it three positions to sixth place in offshore renminbi countries. Luxembourg, together with the UK, Singapore, Australia, and France currently form the top five renminbi offshore countries. Renminbi payments tapers off in the US Figure 1. Renminbi payments value evolution
Speaking on renminbi’s failure to launch in the US, Lisa O’Connor, renminbi director for SWIFT said, “We expect that most US flows we currently see in renminbi are non-trade related and are subject to more variability than countries with strong underlying trade flows like Europe so this is not unexpected. The renminbi as an invoicing currency between the US and China needs to overcome a number of challenges including inertia and systems set up to invoice only in USD.” Although overall renminbi payments saw a slight dip of 4.2% between November and December 2012 (versus an average decrease of 5.7% across all currencies), the strength of the Chinese currency r... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Payments, Rmb, Transaction BankingChina,Payments,Rmb,Transaction Banking, China,Payments,Rmb,Transaction Banking, Keywords:SWIFT, Lisa O’Connor, James Will, Alfred Nader, Western Union SWIFT, Lisa O’Connor, James Will, Alfred Nader, Western Union
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