Use of Renminbi as Payment Currency Soars in Taiwan

Taiwan has moved up three positions to fourth place on the list of countries by the volume of renminbi payments, according to data from SWIFT’s latest RMB Tracker.

In the last six months, renminbi payments in Taiwan have increased by 120%, overtaking the United States and Australia. Nearly 44% of all payments made between Taiwan and China/Hong Kong are exchanged in renminbi, SWIFT says.

According to SWIFT, renminbi payments are most prolific in the United Kingdom (first place), Singapore (second) and France (third).

“We’ve been following the RMB developments in Taiwan very closely,” says Lisa O’Connor, RMB director at SWIFT. “These are not surprising growth figures given the historic and increasing level of direct activity between the Chinese mainland and Taiwan. Domestic companies in Taiwan are now able to issue RMB-denominated bonds.”

O’Connor pointed out the move in February whereby the Taipei branch of Bank of China was assigned as the local renminbi clearing bank, and the Taiwan Stock Exchange has announced a desire to offer offshore renminbi products.

“All of these positive moves should further support the growth of Taiwan’s RMB payments,” O’Connor says.

The SWIFT RMB Tracker provides monthly reporting on key statistics to understand the progress made by RMB towards becoming an international currency.