U.S. Surpasses Taiwan in RMB Offshore Clearing Value

The U.S. has surpassed Taiwan as the location with the third highest value of renminbi payments, excluding China and Hong Kong, according to SWIFT's RMB Tracker.
By Jake Safane(2147484770)
The U.S. has surpassed Taiwan as the location with the third highest value of renminbi payments, excluding China and Hong Kong, according to SWIFT’s RMB Tracker.

SWIFT’s data shows that U.S.’ RMB payments value increased by 327% between April 2013 and April 2014, placing the U.S. in third, while Singapore remains in first and the U.K. in second. In April, the U.S. accounted for 2.6% of total RMB payments value, up from 1.3% one year ago. As for RMB payments in the U.S. to China/Hong Kong corridor, total value grew 229% between April 2013 and April 2014, and U.S. flows accounted for 2.4% of all payments value sent and received with China/Hong Kong as of the end of April 2014.

“The growing adoption of RMB payments in the United States to China/Hong Kong corridor is a significant milestone that further promotes the cross border use of the currency,” says Michael Moon, head of Payments, Asia Pacific, SWIFT. “Although the corridor remains dominated by the U.S. dollar, data suggests that the United States is increasingly using the RMB to support its corporates that want to reach more suppliers in mainland China. This is good news for the internationalization of the RMB as a world payments currency”.

Overall, the RMB remained the seventh-ranked global payments currency and accounted for 1.43% of global payments, a slight decrease from 1.62% in March 2014, while the U.S. dollar accounted for 42.51% of global payments.

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