The data reveals a continued decline of the RMB in terms of domestic and international payments by value
SWIFT has released the latest data report from its renminbi (RMB) tracker, outlining a monthly snapshot of the currency’s usage. The data reveals a continued decline of the RMB in terms of domestic and international payments by value, falling two positions in the global rankings.
Following a period of strong growth over the past two years, the RMB has found itself somewhat on the back foot in terms of its adoption. As of February 2018, the RMB was the seventh highest utilized currency, falling from fifth place just two years ago. Since then the Swiss franc and Canadian dollar have overtaken the RMB for domestic and international payments.
Presently, the RMB retains a global share of 1.56 percent, its lowest level in two years. Ahead of the RMB, the top six currencies by value are the USD (38.0 percent), euro (34.29 percent), GBP (7.34 percent), JPY (3.29 percent), CHF (1.64 percent), and CAD (1.57 percent).
The RMB’s decline has coincided with a few factors, namely the rise of cryptocurrencies in Asia. While this is not necessarily the cause of its retreat in global usage, its waning influence over the past year has taken place in tandem with an adoption of cryptocurrencies.
- RMB bonds to be included in the Bloomberg-Barclays Global Composite Index
- China cuts banks’ reserve ratios by 1% as economy slows
- PBOC renews currency backup from UK and Japan to defend yuan
- China signals tougher measures to shore up yuan
- China to sell new yuan bills in Hong Kong – a new tool to control the currency now at a 10-year low
- RMB, Philippine peso trading platform formally launched
- China-Japan sign three-year FX swap deal to strengthen financial stability, business activity
- China cuts some banks’ reserve requirements to spur growth
- Bank of China cite benefits of direct RMB-Peso conversion
- Yuan up as China restarts ‘counter-cyclical factor’