Its solid position has been strengthened further.
Recent data shows that the RMB’s activity share for documentary credits increased in value from 7.32% in January 2013 to 9.43% in January 2015.
According to a release from SWIFT, this strengthens the RMB’s position as the second most used currency for this purpose.
The RMB ranks behind the USD which remains the leading currency for documentary credits with a share of nearly 80%.
In January 2015, China, Singapore and Hong Kong remain the top three countries using RMB as currency for documentary credits, exchanging nearly 95% of all RMB documentary credit transactions worldwide in value. They were followed by Macau and Taiwan with 0.88% and 0.86%, respectively.
Here's more from SWIFT:
“Letters of credit and documentary collections are widely used instruments to finance trade flows across Asia,” says André Casterman, Global Head, Corporate and Supply Chain Markets at SWIFT.
“China’s position as one of the main exporting and importing countries in the world is supporting the increasing use of the Chinese currency.
However, many of these RMB transactions are still mostly driven by China and Hong Kong, even though the RMB is nearly 10% of traditional trade finance flows globally in terms of value.”
In January 2015, the RMB held its position as the fifth most used payments currency in the world with an activity share of 2.06%.
Overall, RMB payments decreased in value by 10.22% in January 2015, whilst the decrease for all payments currencies was at 5.7%.
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