Date
21 September 2017
The renminbi overtook the Canadian and Australian dollars in just two months late last year. Photo: Bloomberg
The renminbi overtook the Canadian and Australian dollars in just two months late last year. Photo: Bloomberg

Renminbi now fifth most-used currency

The renminbi is now the fifth most-used currency for international payments, The Wall Street Journal reported, citing Swift, the organization banks use to coordinate transactions across borders.

Swift said Wednesday 2.2 percent of all payments over its network last month were denominated in the currency, also known as the yuan.

The Chinese currency rose two places in the rankings in only two months, leapfrogging over the Canadian and Australian dollars.

The renminbi is now just behind the Japanese yen, which accounts for 2.7 percent of Swift payments.

“The rise of various offshore RMB clearing centers around the world, including eight new agreements signed with the People’s Bank of China in 2014, was an important driver fueling this growth,” the newspaper quoted Wim Raymaekers, head of banking markets for Swift, as saying.

The US dollar (44.6 percent of all Swift payments) and the euro (28.3 percent) continue to dominate the international monetary system. The British pound is in third place with 7.9 percent.

Last week, China’s central bank said the renminbi was used for nearly a quarter of all payments across the country’s borders in 2014.

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