SWIFT is reporting that in December 2019 the RMB dropped one position to sixth in the currency ranking for global payments by value, with a share of 1.94%.
The US dollar remains the number one ranked currency, accounting for 42.22% of global payments in December last year. This represents a 5.9% increase compared to the SWIFT data from 2017.
The euro was used for 31.69% of global payments in December 2019, leaving it second in the SWIFT rankings. This figure represents an 11.13% decline compared to December 2017.
Third and fourth in the ranking are the British pound and Japanese yen, which accounted for 6.96% and 3.46% of global payments, respectively, in December.
The currency that overtook the RMB to claim fifth spot in the latest SWIFT ranking is the Canadian dollar, which accounted for 1.98% of global payments in December 2019. This is up from 1.57% in December 2017.
The latest data from SWIFT also shows that the UK has further consolidated its position as the largest hub for FX transactions in RMB outside of China. In December 2019, 43.57% of RMB transactions were done in the UK, compared to 36.3% in 2016.
By contrast, the share of RMB trading taking place in Hong Kong declined from 29.3% in 2017 to 24.91% in December last year.