More than 1,000 financial institutions have used renminbi (RMB) for payments with China and Hong Kong in May, representing 25 per cent of all institutions exchanging payments with the latter across all currencies, according to recent data.

The SWIFT data showed that this is a 22 per cent increase in the number of institutions using the RMB and a six per cent increase in adoption, up from 29 per cent two years ago.

The growth in RMB payment is being supported by an increasing number of banks, it said.

In May, RMB adoption for payments by financial institutions in Asia Pacific increased to 37 per cent from 33 per cent in May 2013.

During the same time period, the Americas experienced even stronger growth with financial institutions increasing their use of the RMB for payments by 10 per cent, leading to 37 per cent adoption.

Europe followed closely with 33 per cent adoption and Africa - Middle East with 28 per cent.  

Michael Moon, head of payments, Asia Pacific, SWIFT, said: “Every month we witness new proof of global RMB adoption. The number of banks that use RMB for payments with China and Hong Kong is a key internationalisation indicator.

“This large number also shows that many banks, across the globe, may have an interest in connectivity to the China International Payment System that China will launch by end of the year.”

Overall, the RMB strengthened its position as the fifth most active currency for global payments in value and accounted for 2.18 per cent of payments worldwide in May.

Although all currencies decreased in value by 3.1 per cent, RMB payments increased in value by 1.99 per cent compared to April which leads to its record high share in global payments. - TradeArabia News Service