RMB reaches nearly 40% adoption across financial institutions worldwide

Published 
  • SWIFT’s RMB Tracker shows an 18% increase in RMB usage by financial institutions worldwide for payments with China and Hong Kong.

Brussels – Recent SWIFT data shows a double digit growth of RMB adoption by financial institutions established in all regions. In February 2016, 1,131 banks were using the RMB for payments with China and Hong Kong, representing 37% of all institutions exchanging payments with China and Hong Kong across all currencies. This is an 18% increase over the last two years. The majority of these institutions are located in Asia-Pacific (557), followed by Europe (376), the Americas (124) and then Africa and Middle East (74). Compared to February 2014, the strongest growth is seen in the Americas (+31%), followed by Asia-Pacific (+18%), Europe (+17%) and Africa – Middle East (+12%).

Recent SWIFT data also indicates that 24% of the offshore RMB payments done with China and Hong Kong are handled by Chinese banks with a global footprint, meaning Chinese banks that have offshore branches and/or subsidiaries.

“The global volume of payments in RMB fluctuates, and is actually down by value compared to last month, likely influenced by the seasonal effect of the Chinese New Year,” says Michael Moon, Head of Payments, Asia-Pacific at SWIFT. “The adoption of the currency by more financial institutions, within Asia-Pacific and abroad, is increasing the global utility of the currency for payments. However, as widely reported in the press, there are some concerns that growing constraints with making payments in RMB are slowing adoption rates. The days to make payments in RMB have grown to the largest levels in nearly 10 years. Fostering further global connections and endpoints could alleviate some of these constraints, yielding continued internationalisation of the Chinese currency.”

In February 2016, the RMB remains the fifth most active currency for global payments by value with a share of 1.76%. This represents a decrease of 27.5% compared to January 2016. Payments across all currencies decreased in value by 1.3% during the same period.

Most recent episodes

Transitioning a Corporate from LIBOR to CME Term SOFR

The loans market has predominantly moved to forward looking term rates, and both corporate borrowers and global lenders are increasingly turning to CME Term SOFR as the forward looking risk-free benchmarks to support their activities. Listen to this podcast, featuring Gavin Lee, Marco Bianchi (CME...

37:16

HSBC’s Sibos Spotlight – View from Sibos

TMI's Eleanor Hill invites Neil Atkinson, Nadine Lagarmitte, and Vinay Mendonca (HSBC) to discuss the critical treasury topics and conversations highlighted at this year's Sibos conference in Amsterdam. Amongst a wealth of market insights, our guests consider the most critical developments emerging from...

38:40

ECB’s Targeted TLTRO Tweaks Set to Drain Excess Market Liquidity

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 7th...

05:42

Asian Treasury Trends: Learnings and Opportunities

Former corporate treasury professional, Valerie Heng (Deloitte) joins Eleanor Hill to discuss the hot topic of treasury transformation, alongside other key shifts treasurers should be aware of. In this podcast, Valerie uses her knowledge of the Asian Treasury market to explain how the role of the...

20:27

Collaborative Trade Finance: How to Unlock Liquidity at Speed

Imagine if trade finance applications were fully collaborative and corporates could communicate with every trade participant via an open digital hub.  In this podcast, Vincent Almering (Interfood Holding B.V.) and Enno-Burghard Weitzel (Surecomp) explain to TMI's Ben Poole how collaborative trade...

35:54

Critical Trends in Trade and Supply Chain Management

Three trade finance experts from Societe Generale join Ben Poole (TMI) in the virtual TreasuryCast studio to discuss critical developments in the trade space that are particularly impactful to corporate treasurers. In this podcast, Isabel Santos, Ariel Emirian and Pierre-Antoine Barreault (Societe...

21:32

Citizen Development: The New Productivity Engine for Corporate Treasurers

‘Citizen development’ is about encouraging non-IT professionals to learn software development skills. Here, Dor Haim (Kryon) questions whether, with the roll-out of low-code platforms, treasure...

07:09

Managing the Impact of Rising Interest Rates and Inflation

With interest rates rising as central banks try to contain inflation, a difficult balancing act is in progress. The responses of the various monetary policy committees are being watched with a keen eye by treasurers the world over as they consider their next actions. Tarek El-Yafi and Karen Hom (Standard...

08:21

Community Impact: Cash and Fixed Income Investing for Good

CNote is a tech-enabled impact investment platform – and a means for finance to be used as a “tool for economic justice”. Its focus on diversity, equity, and inclusion helps corporate and institutional investors use their capital to strengthen underserved communities.  Catherine Berman (CNote)...

13:37

UK Gilts Send Markets Spiralling Following Truss Financial Package Announcement

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 7th...

05:31