South Korea’s renminbi payments value surged 563 percent between June 2013 and June 2014, putting the nation in the eighth spot in a global ranking in the payments, excluding China and Hong Kong, according to SWIFT’s yuan tracker report.
In June 2014, 68.9 percent of all direct payments between South Korea and China/Hong Kong were in renminbi, up from 32.8 percent in the same month last year, the report showed.
“We have been monitoring the use of the RMB in South Korea for a while, observing its fast growth over the past two years, particularly as more banks and businesses are using RMB in international transactions,” said Michael Moon, Head of Payments, Asia Pacific, at SWIFT.
“South Korea’s RMB payments growth is increasingly driven by customer payments, which are a good proxy for trade settlement,” he said.
Moon added that the “announcement by South Korea and China in early July to set up a new RMB clearing centre in Seoul will further benefit the trading activities between the two countries. This agreement establishes South Korea as an important offshore RMB clearing centre in North Asia.”
Overall, the renminbi reinforced its position as the seventh most active currency for global payments and accounted for 1.55 percent of payments worldwide. Payments in the Chinese currency increased in value by 7.1 percent in June, while at a global level, all currency payments increased in value by only 1.4 percent during the month, according to SWIFT, the global financial industry cooperative.
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