Renminbi Usage In Cross Border Payments Regional Patterns And The Role Of Swaps Lines And Offshore Clearing Banks
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Renminbi Usage in Cross-Border Payments: Regional Patterns and the Role of Swaps Lines and Offshore Clearing Banks
Author: Hector Perez-Saiz
language: en
Publisher: International Monetary Fund
Release Date: 2023-03-31
The paper examines the usage of the Renminbi (RMB) as an international payment currency. Globally, the use of RMB remains small, accounting for 2 percent of total cross-border transactions. Using country-level transaction data from Swift** for 2010–21, we find significant regional variations in the use of RMB for cross-border payments. While RMB is little used in some regions, it has gained traction in others, and these cross-country differences have widened over the years. Such differences can be partly explained by an economy’s geographic distance, political distance, and trade linkages with China. However, it also reflects the impact of policy measures by the People’s Bank of China, including establishing bilateral swap lines and offshore clearing banks. Both policy measures helped to address offshore RMB liquidity shortages given China’s overall capital account restrictions, with the offshore clearing banks having a quantitatively larger impact. Our analysis contributes to a better understanding of the growing importance of RMB within the international monetary system.
Global Cross-Border Payments
Author: Mr. Eugenio M Cerutti
language: en
Publisher: International Monetary Fund
Release Date: 2025-06-13
Cross-border payments are essential to the global financial system, facilitating trade and investment. The global cross-border traditional and crypto payment market approached a value of about one quadrillion dollars in 2024, with crypto payments representing only a small fraction despite their recent surge. Focusing on data from Swift—the largest traditional cross-border financial messaging network—we study the characteristics and evolving patterns of these payments over 2021-24. Notably, payments are predominantly concentrated in advanced economies, and are driven by financial institutions and large transactions. While currency usage remains stable—with the U.S. dollar maintaining the largest share—the Chinese renminbi demonstrates signs of increasing global integration, albeit from a low base. Gravity model estimates confirm that traditional economic linkages, via trade, portfolio investment, and FDI, shape cross-border payments. However, aggregate dynamics mask substantial heterogeneity across message types (customer vs. financial related payments), currencies, and transaction sizes, with information asymmetries playing a diminished role in larger payments.
The US–China Rift and Its Impact on Globalisation
Today, globalisation has entered a critical phase of slowdown. The asymmetrical US-China relationship that has been the fundamental axis up to now has entered into crisis. The financial imperialism of the dollar proves to be increasingly burdensome and destabilizing. The rise of capitalist China is questioning US imperialist levy. This book offers a comprehensive analysis of the looming confrontation, while identifying potential points of no return in the intertwined dynamics of the world market, geopolitical configurations, and class relationships. Neither contender can give up the game. Will there be a de-globalisation? Is a multipolar order realistic? Are we facing a Chinese hegemonic challenge or rather first signs that hint at the potential for systemic disintegration?