The Chinese currency renminbi (RMB), commonly known as the yuan, has maintained its position as the fourth most active currency for global payments by value, according to a recent report. Released by the Society for Worldwide Interbank Financial (SWIFT), a leading provider of financial messaging services, the report highlights the continued expansion of RMB usage on the international stage.
In February, the RMB accounted for 4 percent of global payments by value, demonstrating its significance in the international financial landscape. Despite a 20.47 percent decrease in RMB payments value compared to January, the currency’s resilience is evident, particularly when considering that all payment currencies experienced a 10.37 percent decrease during the same period, as reported by SWIFT.
When examining international payments outside the Eurozone, the RMB maintains its prominence, ranking fifth with a share of 2.78 percent in February. This underscores the currency’s growing influence beyond regional boundaries and its increasing adoption in global transactions.
A significant portion of offshore RMB transactions occurs in China’s Hong Kong Special Administrative Region, which accounts for 79.9 percent of the market share. Following Hong Kong, other key players in the offshore RMB market include Britain, with a 5.37 percent share, and Singapore, with a 3.39 percent share. These figures indicate the widespread use of RMB in international trade and investment activities, further solidifying its status as a global currency.
The growth in RMB usage reflects China’s continued economic expansion and its efforts to promote internationalization of its currency. As China plays an increasingly significant role in global trade and investment, the RMB’s importance in facilitating cross-border transactions is expected to further increase in the coming years.
With ongoing advancements in China’s financial infrastructure and continued liberalization of its capital markets, the RMB is poised to become an even more integral component of the international monetary system. As such, businesses and financial institutions worldwide are likely to continue embracing the RMB for their cross-border transactions, contributing to its sustained growth and prominence in the global payments landscape.
