{"id":59145,"date":"2016-12-12T00:05:00","date_gmt":"2016-12-11T23:05:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/euro-surpasses-rmb-in-traditional-trade-finance\/"},"modified":"2019-12-31T01:21:09","modified_gmt":"2019-12-31T00:21:09","slug":"euro-surpasses-rmb-in-traditional-trade-finance","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/euro-surpasses-rmb-in-traditional-trade-finance\/","title":{"rendered":"Euro surpasses RMB in traditional trade finance"},"content":{"rendered":"

SWIFT RMB Tracker shows the euro is now the second-most-active
\ncurrency for trade finance, whilst the RMB slips to position number
\nthree<\/strong> <\/em><\/p>\n

Since the launch of the first SWIFT RMB Tracker in November 2011, the RMB has shown stellar growth for payments, whilst RMB usage by value in traditional trade finance \u2013 letters of credit and collections \u2013 has been decreasing since 2014. The Chinese currency is now the third-most-active currency in trade finance, after the euro, with a share of 4.61%.<\/p>\n

Three years ago, the RMB was ranked #2 in trade finance with a share of 8.66%. Since October
\n2013, the trade finance values in RMB have decreased by 66%, whilst trade finance across all
\ncurrencies decreased in value by 35%.<\/quote><\/p>\n

\u201cThe general slowdown of the Chinese and world economies over the past few years has impacted
\nglobal trade growth across all currencies, not just the RMB,\u201d<\/em> says Michael Moon, Head of Payments
\nMarkets, Asia Pacific, SWIFT. \u201cFor example, commodities trade growth has been declining as
\nevidenced by the reduction of documentary trade. On a positive note, the inclusion of the RMB in the
\nSpecial Drawing Right (SDR)[[The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries\u2019 official
\nreserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to
\nmembers. SDRs can be exchanged for freely usable currencies. The value of the SDR is based on a basket of five major
\ncurrencies\u2014the U.S. dollar, euro, the Chinese renminbi (RMB), the Japanese yen, and pound sterling\u2014as of October
\n1, 2016. Source: International Monetary Fund]] basket should generate further trust and confidence in the RMB
\ncurrency and support further RMB internationalisation.\u201d<\/em><\/p>\n

In terms of international payments, compared to September 2016, the RMB has dropped one
\nposition to #6 in the currency rankings for international payments, with a share of 1.67%. This
\nmonth\u2019s decrease is likely due to seasonal effects following the Golden Week holiday in China in
\nOctober. RMB payments value decreased by 22.44% compared to September 2016, whilst in
\ngeneral all payments currencies decreased by only 5.96%.<\/p>\n

\"evolution_of_rmb_usage.jpg\"<\/a>