Financial messaging service SWIFT has reported
that RMB payment volumes have fallen for the second month in a
row.
In SWIFT’s ranking of global currencies, the
RMB lost two places since September, falling from 15th
to 17th place, overtaken by the South African Rand and
New Zealand Dollar.
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“This is not a stellar performance for
an emerging currency,” SWIFT said in a statement. “It might
challenge some analysts’ predictions that the RMB will be a top
three currency by 2015.”
Though volumes overall are down, international
usage of the RMB is continuing to rise. SWIFT is reporting
significant increase in RMB usage in Taiwan, Russia, Indonesia, and
Philippines.
SWIFT also highlights the fact that 81% of all
RMB payments are still processed by financial institutions in Hong
Kong, indicating that the RMB still has rather limited
international use.
“Considering China’s share of 9.6% in world
trade in 2010, one could say the RMB is underutilised at the
international level and has the potential to develop towards a top
global currency,” said SWIFT.
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By GlobalData“Possibly so, but the US dollar is not quite threatened
yet.”
