KUALA LUMPUR: The renminbi (RMB) has registered a decline in international usage, according to a SWIFT RMB Tracker report.
The rapid developments in Southeast Asian countries including Malaysia will however help revitalise the growth of the Chinese currency, it added.
The report said the proportion of international currency payments (customer initiated payments and institutional transfers) denominated in RMB fell from 2.09 per cent in June 2015 to 1.98 per cent in June 2017.
Despite efforts to internationalise the RMB, the report said the US dollar remains the major currency for payments to China.
“For example, 98 per cent of payments sent from the United States to China by volume are in US dollar, and the RMB’s share of payments remains low for all countries - between one per cent and two per cent - with the exception of Taiwan, where 15 per cent of payments were made in RMB,” it said.
The report said key factors that will support long-term RMB internationalisation include promising RMB growth in South East Asian countries along the Maritime Silk Road and strong increase in RMB credit transfer payments in value from China to Germany, Poland and Czechia (formerly Czech Republic).
Others include Hong Kong’s continued role as an essential intermediator, increasing its RMB activity share to 76 per cent 49.4 per cent of all RMB payments currently transit through Hong Kong.