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April 24, 2012updated 04 Apr 2017 4:14pm

Europe largest RMB contributor

Europe has overtaken Asia Pacific in the use of the Chinese renminbi for global payments in the first quarter of 2012, according to SWIFTs latest RMB Tracker. Aside from China and Hong Kong, Europe is the biggest contributor to RMB offshore transactions, accounting for 47% of the payments in renminbi worldwide

By Raphael Michilis

Europe has overtaken Asia Pacific in the use of the Chinese renminbi for global payments in the first quarter of 2012, according to SWIFT’s latest RMB Tracker.

Aside from China and Hong Kong, Europe is the biggest contributor to RMB offshore transactions, accounting for 47% of the payments in renminbi worldwide. Meanwhile, Asia-Pacific’s share in RMB payments declined from 59% to 41%

RMB represented 6.7% of all European payments with China and Hong Kong in Q1 2012, an adoption rate slightly lower than the 7.2% observed in transactions with Asia Pacific countries.

However, Europe’s contribution to RMB payments is still more significant, thanks to its bigger absolute payments value.

The contribution in absolute value to RMB payments from several European countries is also bigger than that of many Asia-Pacific countries.

According to SWIFT, UK-based financial institutions are leading the City of London to be the next major offshore RMB centre. It did 30% of RMB payments and 46% of RMB FX in Q4 2011, staying on par with Singapore.

Africa and the Middle East also showed strong adoption of the RMB, but the SWIFT report shows the overall value is still small.

Adoption in the US and Canada was positive, but nearly zero in Latin America.

 

Renminbi in numbers:

  • 8.6% was the average growth of global payments from February to March.
  • 13.2% was the RMB growth for the same period, with its share climbing from 0.33% to 0.35%.
  • 16 was the position RMB occupied by the RMB in the currency global ranking, after leaving the position 17 it was in February.

 

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