The Renminbi (RMB) increased its share in the global issuance of letters of credit (L/Cs) and entered the top four of world payment currencies by value in August 2015, according to global transaction services organisation, SWIFT.

The Chinese currency has overtaken the Japanese Yen with a record high share of 2.79% in global payments to take its fourth position.

Track record

In the last three years, the RMB has overtaken seven currencies rising from position number 12 with a share of 0.84% in August 2012.

The currency has also further established itself as the dominant currency for trade finance behind the US dollar.

Asia Pacific dominance

SWIFT's latest RMB Tracker report confirms the RMB's position at number two for global issuance of L/Cs by value.

The report also says that foreign exchange transactions in RMB by value reached over one million in August 2015 and that it is now the most used currency for Asia Pacific intra-regional payments with China and Hong Kong.

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