The Chinese renminbi has overtaken the Russian ruble on the list of most popular international payments currencies, according to SWIFTs RMB tracker.
The Chinese currency rose from the 20th most-used currency in January 2012 to the 13th in January 2013, SWIFT says. RMB payments grew in value by 171% over that period, with a 24% increase in the last month alone. The currency has a market share of 0.63% now compared to 0.25% a year ago.
Last month, Standard Chartered said its own Renminbi Globalisation Index showed a rise in the use of the currency in recent months, particularly due to a rebound in deposits in Hong Kong.
Despite the growth globally, the renminbi has had trouble taking off as a payment currency in the United States. SWIFT itself earlier this year predicted a major decline in the use of the currency in the U.S.
Well have to see if the drop in RUB is systemic, but it is clear that offshore centers like Hong Kong, London and Singapore are fueling RMB payments, says Lisa OConnor, global RMB director at SWIFT.
OConnor ruminates whether usage of the renminbi will soon surpass the Thai baht, currently the tenth most-used currency: Given the acceleration of RMB payments, it will be interesting to see if the RMB displaces the THB in coming months, OConnor says.
The worlds most-used payments currencies are the euro, U.S. dollar and Great Britain pound, according to SWIFT data.
(CG)