China and Japan have made the renminbi the second most traded currency for two-way payment, second only to the yen.
The renminbi accounted for 7 percent of bilateral trade settlements in October, up from 3 percent in 2013, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) said.
The Chinese unit overtook the Hong Kong dollar and the US dollar for such payments.
The Japanese yen remains the largest payment currency between Japan and mainland China or Hong Kong, according to the Hong Kong Economic Journal.
Internal money transfers are the main drivers for renminbi payment, SWIFT said.
Worldwide, the renminbi was the fifth most traded currency, accounting for 1.92 percent of all payments in October.
However, the value of renminbi deals fell 23.53 percent month on month.
Payment in all other currencies dropped a combined 2.42 percent, possibly due to the week-long national holiday in China at the beginning of the month.
SWIFT Japan head Yuji Takei expects renminbi use for trade settlements and investment to further increase given rising confidence in the Chinese currency.
This follows the launch of renminbi bonds by a Japanese bank in June and China’s status as the country’s largest trade partner.
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