Germany records strong Rmb growth, opens door to becoming clearing hub in Europe
Germany cements position as one of China major trading partners, as Rmb payments value rose 71% in May 2013. July 08, 2013 | Baron LaudermilkGermany was recently ranked eighth in the world in terms of renminbi payments value (excluding China and Hong Kong), as it notched a 71% increase in payments value denominated in renminbi between April and May 2013, according to SWIFT data. Lisa O’Connor, renminbi director at SWIFT, said, “Mid last year, China and Germany said that both sides would support financial institutions and companies in the use of renminbi and Euro in bilateral trade and investments. Our data shows, especially the weight of customer payments – a good proxy to imports and exports – that the renminbi has gained in popularity for trade settlement.” Germany records huge increase in Rmb-denominated payments in April-May 2013 Figure 1.Weight and split of Rmb payments value as of May 2013 According to SWIFT’s latest renminbi tracker, “In May 2013, 8.2% of payments between Germany and China / Hong Kong were in renminbi, versus 4.8% in April 2013, and only 2.4% in May 2012. The weight of customer payments is at 21% versus 79% for institutional payments. Customer payments are normally much lower, for example 5% for France in April 2013. This is probably a good reflection of the significant trade relationship between Germany and China. Germany accounted for about one third of China's total trade with the European Union (EU) during the period.” Increased acceptance of renminbi payments in Germany, and the fact that it accounts for a major portion of China’s total trade with the EU, demonstrates the country’s intent and attempts to establish an international renminbi clearing hub. Indeed, efforts to establish a renminbi hub in Germany may further enhance bilateral trade between China and Europe, “Germany could potentially be an offshore centre for renminbi business. There are many German corporates that could benefit from disc... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Rmb, Transaction BankingChina,Rmb,Transaction Banking, China,Rmb,Transaction Banking, Keywords:EU, Germany, Bilateral Trade, SWIFT, Lisa O’Connor, Sibos 2013 EU, Germany, Bilateral Trade, SWIFT, Lisa O’Connor, Sibos 2013
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