Singapore biggest offshore yuan center outside Hong Kong
August 18, 2014 Category Finance, Weekly
Singapore, the U.S., Australia and South Korea are the offshore hubs that saw their shares of the renminbi payments market grow the most in the past year. Singapore overtook London to become the biggest offshore renminbi center outside Hong Kong. Its payments value accounted for 28.4% of the business not conducted in Hong Kong or on the mainland in June, up from 16.5% in June last year, according to global transaction services organization SWIFT. The U.S. replaced Taiwan to become the third-biggest player outside Hong Kong or the mainland, with a market share of 10.8%, while Australia replaced Luxembourg as sixth-biggest. South Korea was the biggest mover, climbing from 15th last year to 8th, on the back of a strong policy push by regulators in Seoul. New SWIFT data showed renminbi settlements rose 563% in South Korea in the year to June. SWIFT said the value of renminbi payments in the U.S. rose 327% between April last year and April this year. Competition for offshore renminbi business, including trade settlement and capital investment, is getting fiercer as more centers seek to grab a share of the pie and capitalize on Beijing’s ambition to make the renminbi a global currency. Hong Kong is still the undisputed No 1 renminbi payments center, but its global market share fell from 78% in January 2012 to 71% in June. Overall, the renminbi reinforced its position as the seventh-most-active currency for global payments, accounting for 1.55% of payments worldwide in June.
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