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London Leads World's RMB Offshore Forex Transactions: Survey

London led the Chinese currency renminbi (RMB) offshore foreign exchange (forex) transactions in the world, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) said Thursday in London.

SWIFT's RMB Tracker special edition, which was issued during Sibos 2019 from Sept. 23-26 here, an annual banking and financial conference organized by SWIFT, showed that London handled 33.79 percent of the world's RMB offshore forex transactions in July 2019.

The report named "An inside look into London's quest for the renminbi" said the number of global financial institutions using the RMB for payments has grown increasingly, up 11.31 percent in July 2019 compared with that in July 2017, with the total up from 1,989 to 2,214.

The report revealed that the biggest increase occurred in Africa and the Middle East, rising by 20.98 percent during the period, with the number increasing from 143 in July 2017 to 173 in July this year.

Meanwhile, as of August 2019, the RMB's share as a global payment currency was 2.22 percent, it said.

"Despite the current Brexit climate, confidence over London's position for RMB trading activities remains strong," said David Scola, acting head of North America, Americas and UK Regions at SWIFT.

"As a major foreign exchange center, London offers the RMB substantial room to grow organically, with minimal institutional and political intervention," said Scola, adding that "the city's diverse investor profile and liquidity range are also catalyzing this growth."

(www.chinaview.cn 2019-09-30)