Strong RMB growth continues

Written by Jan Jetter || October 14 2014

According to the latest SWIFT RMB Tracker, the number of financial institutions adopting the RMB has risen by 35% with global RMB payments tripling in value over the last two years.

One third of financial institutions are using the RMB to make payments to China and Hong Kong. Over the last two years RMB adoption by financial institutions has risen 18% in Asia, 44% in the Americas, followed by the EU with 47% and the Middle East and Africa with 83% growth. There are approximately 10,000 financial institutions using the RMB, up from 900 in 2011. It now ranks 7th as the most widely used currency for inbound and outbound traffic, coming in closely behind the Canadian Dollar.

Policies aimed at liberalizing the finance sector in order to accelerate the internationalization of the RMB seem to be working. Continued reforms, such as the Shanghai Hong Kong Stock Connect and the increased Chinese presence in foreign markets should further stimulate this process. Kapronasia analysis shows that the RMB should surpass the Canadian Dollar in terms of traffic value by the first half of 2015 if current growth rates continue.