The euro is the second most used currency for trade finance, whilst China's renminbi (RMB) slips to position number three in the latest Swift RMB Tracker.

Meanwhile the value of trade finance payments across all currencies has fallen by more than a third in four years, according to Swift data.

RMB history

Since Swift launched its RMB Tracker in November 2011, the Chinese currency has increasingly been used for payments, but RMB usage by value in traditional trade finance - letters of credit (L/Cs) and collections - has been decreasing since 2014.

The Chinese currency is now the third-most-active currency in trade finance, after the euro, with a share of 4.61 per cent. Three years ago, the RMB was ranked second in trade finance with a share of 8.66 per cent.

Declining trade finance

Since October 2013, trade finance values in RMB have decreased by 66 per cent, whilst trade finance across all currencies decreased in value by 35 per cent.

"The general slowdown of the Chinese and world economies over the past few years has impacted global trade growth across all currencies, not just the RMB," according to Michael Moon, Swift's head of payments markets, Asia Pacific.

"For example, commodities trade growth has been declining as evidenced by the reduction of documentary trade," he added.

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