Rmb payments in Europe rise, driven by strong Q3 2013 growth
Europe’s 163% payments rise in renminbi over 2013 combined with strong Q3 growth has led it to equal Asia (excluding China and Hong Kong) in value of renminbi payments. October 31, 2013 | Timothy ShimWhen the renminbi first began global usage in trade settlement in mid-2012, it was assumed that strength in the Chinese currency would be buoyed by Asia before expansion to Europe, the Americas, followed by the rest of the world. Since then, SWIFT has been actively tracking the development of the renminbi globally. Europe’s increasing use of Rmb drives currency’s placing Figure 1. Renminbi moves to 12th spot as world’s payment currency The latest SWIFT renminbi tracker has highlighted a remarkable 163% increase in Europe over the last year in renminbi customer payments. According to SWIFT, this is much higher than growth seen in Asia (excluding China and Hong Kong), which stands at 109% over the same period. This year has seen Europe almost neck to neck in terms of value with Asia driven by strong growth in Q3. For the Asia Pacific region, customer payments in renminbi were bolstered by Singapore and Taiwan, with adoption of the payments currency still relatively low in Australia and Japan. Patrick de Courcy, deputy chief executive and head of markets & initiatives, Asia Pacific at SWIFT said “Our business intelligence indicates that China's major trade partners in Europe are now embracing the Rmb for trade settlement. It is “game-one” for those banks, as not all are capturing this emerging Rmb business to the same extent. Back in Asia, recent initiatives by e.g. the Monetary Authority of Singapore to strengthen China-Singapore financial cooperation may help to increase adoption of offshore RMB by financial institutions in this region.” In September 2013, the Rmb remained stable in its position as the #12 payments currency of the world, with an increased market share of 0.86% compared to 0.84% in August 2013. Overall, Rmb payments increased in value by 4.6% in September 2013, whilst the growth... 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, Patrick De Courcy, MAS SWIFT, Patrick de Courcy, MAS
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