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SWIFT RMB Tracker: 31 countries now use the renminbi for at least 10% of their payments with China,

In July 2012, the RMB moved up one position to #15 most-used payments currency with a market share of 0.45% (versus 0.43% in June 2012). As per last month's RMB Tracker, the renminbi has overtaken the South African Rand, which remains at 0.44%. It also gets closer to the Danish Krone currently at position #14 with 0.47% market share.

Of the 158 countries that made payments with China and Hong Kong in July 2012, 20% of countries had at least 10% of their payments value in renminbi. On average, 4% of all payments value with China, and Hong Kong were in RMB. Strong performers are the Gulf countries, Singapore and the UK, and also Canada and Germany show good take-up, whereas adoption by the US, Japan and Australia remains low.

A report in The Corporate Treasurer magazine examined the benefits and the pitfalls of renminbi invoicing earlier in the year, noting that switching to renminbi could reduce the cost of buying from China, as well as increased payment processing efficiency.

China suppliers add a premium onto the cost of trade for the FX risk they take by using US dollars. European treasurers invoicing in renminbi can eliminate that premium by managing their own renminbi exposure. Savings can be 2-4%+. Also making payments into China in renminbi can also cut processing time from a week to same-day processing.

But with the value of the renminbi posting its first annual decline this year since 2005  – dipping 1% percent year-on-year to Rmb6.376 against the dollar in early August – some China-based suppliers are showing less enthusiasm about being paid in their own currency.

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