The payments value for the renminbi decreased by as much as 30% in 2016 amid a slowing China economy, shows the latest Swift renminbi tracker.
China renminbi's share as an international payments currency dropped from 2.31% in December 2015 to 1.68% in December 2016, ending the year as the sixth most active currency for international payments.
"The decrease in renminbi usage for payments in December may be attributed to a convergence of several events: the slowdown of the Chinese economy, the volatility of the renminbi exchange rate and regulatory measures on capital outflows," says Michael Moon, head of payments markets, APAC, Swift.
Renminbi payments value decreased by 15.08% in December 2016 compared to November 2016, while overall, payments value for all currencies increased slightly by 0.67%.
Moon notes that despite the slowdown, renminbi internationalization will continue to benefit from major financial infrastructure milestones, such as the Cross-border Interbank Payments System and the renminbi offshore centre in the US.
