A report issued by SWIFT, the provider of interbank payments and communications services, has said that use of China's currency by the US, the renimbi (RMB), has remained fairly constant in the past two years. While there was a 10.3 per cent increase in RMB payments by the US in May 2015 compared to May 2014, there was a decline of 1.6 per cent in the 12 months leading up to May 2016.

SWIFT's Astrid Thorsen, said: “Over time, we expect the United States to further strengthen its position on the RMB with the recent creation of the US RMB Trading and Clearing Working Group. The main objective of this working group is to identify, evaluate, and recommend opportunities to develop and expand the trading, clearing, and settlement of RMB in the United States.”

SWIFT also stated that, in May 2016, the United States accounted for 10.5 per cent of all offshore RMB payments by value. The United Kingdom accounts for 23.6 per cent – the biggest user excluding Hong Kong and China itself. Singapore accounts for 19.8 per cent and Taiwan 11.6 per cent. China and Hong Kong represent almost three-quarters – 74.9 per cent – of all RMB payments.

Thorsen added: “The establishment of New York as a RMB trading centre would represent a significant development for the city, which would also reinforce North America’s position currently covered by the RMB offshore centre located in Toronto.”

---

CTMfile take: the US dollar continues to be used for more than 95 per cent of payments the US and Hong Kong/China, while use of RMB is at a fairly constant level of around 2.4 per cent. We could expect to see this change in future as the renminbi gains importance as a reserve currency.