The global rollout of the RMB continues.

Now one of the top 10 currencies by turnover
The renminbi for the first time entered the list of top 10 most traded currencies, according to the latest triennial foreign exchange (FX) market survey by the Bank for International Settlements (BIS) released on September 5.

The latest survey, which took place in April this year, shows the renminbi has become the ninth most actively traded currency in 2013 with a share of 2.2% in global FX volumes, mostly driven by a significant expansion of offshore renminbi trading. It says the surge was in line with the increased efforts to internationalize the Chinese currency with the renminbi turnover soaring from US$34 billion per day in April 2010 to US$120 billion in 2013.

However, the US dollar remained the dominant vehicle currency; it was on one side of 87% of all trades in April 2013, about 2 percentage points higher than in April 2010. The euro was the second most traded currency, but its share fell to 33% in April 2013 from 39% three years ago.

New SAFE relaxation of RMB sweeping and pooling
The second batch of selected companies allowed to perform cross-border sweeping, pooling and centralised payments in RMB has just been approved. 19 Chinese and foreign multi-national corporations were approved to join the SAFE in June. These companies are based in several provinces not just Beijing and Shanhai. The companies involved bank with ICBC, Bank of China, Deutsche Bank, Citi and HSBC. 

Taiwan encourages two-way RMB lending
Taiwan’s central bank issued a circular on 3 September - ‘The RMB circulation mechanism’ - to spur two-way RMB lending with China. This note details the process for intra-group lending by Taiwanese corporations and promoting the use of off-shore RMB for investments in the Kunshan zone.

This seems to be having an effect. According to the latest Bank of America Merrill Lynch (BoA Merrill)-SunGard Asia Pacific Treasury Management Barometer survey, Taiwan-based companies are increasingly making payments and collecting receipts through offshore Chinese renminbi (RMB) accounts.

HSBC is first foreign bank to provide two-way cross-border RMB lending in China
HSBC is the first foreign bank in China to complete a two-way cross-border renminbi lending transaction under a new pilot programme in Kunshan. The transaction was completed for Kunshan President Enterprises Food Company, a subsidiary of Uni-President Group.The city of Kunshan, in Jiangsu province, was approved by regulators in August to launch a series of cross-border renminbi pilots via its "Kunshan Deepen Cross-Strait Industrial Cooperation Experimental Zones" which includes renminbi cross-border intra-group two-way lending for Taiwanese corporates in the zone.   

Also, HSBC has also completed its first cross-border renminbi remittance for individuals. This cross-border renminbi remittance service, under the personal current account, provides greater convenience to mainland residents, Hong Kong/Macau and Taiwanese customers, as well as foreigners, in the pilot zone with cross-border remittance needs.