RMB Adoption Stagnates in US in May, SWIFT Data Shows

SWIFT, a global provider of financial messaging services, reported its monthly tranche of data for its monthly RMB tracker, having seen a stagnation in the RMB adoption across the United States, relative to a healthy growth in Q1 2016, per a recent SWIFT statement.

RMB adoption in the US has been a mixed bag – on one hand, centers such as New York are vying for RMB market share in direct competition with other leading financial nexuses such as London. Outside of this space however, Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term in RMB during May 2016 have failed to catch fire as payments declined by -1.6% YoY relative to May 2015.

Overall, the US represented 10.5% of all offshore RMB payments by value in May 2016, making it the fourth highest country in the world, excluding Hong Kong and China itself. By extension, the UK was in the top slot with 23.6%, followed by Singapore (19.8%) and Taiwan (11.6%).

Expanding the scope of usage globally, SWIFT’s tracker showed that the RMB held its position as the sixth most utilized currency in the world in May 2016 by value with a share of 1.90% - this constituted a growth from 1.82% in April 2016, or 4.4% MoM.

According to Astrid Thorsen, Head of Business Intelligence Solutions, SWIFT, in a recent statement on the monthly tracker: “Over time, we expect the United States to further strengthen its position on the RMB with the recent creation of ‘the U.S. RMB Trading and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Working Group.”

“The main objective of this working group is to identify, evaluate, and recommend opportunities to develop and expand the trading, clearing, and settlement of RMB in the United States. The establishment of New York as a RMB trading center would represent a significant development for the city, which would also reinforce North America’s position currently covered by the RMB offshore centre located in Toronto,” Thorsen added.