Luxembourg now ranks second in Europe for renminbi payments value and eighth in the world, excluding China and Hong Kong.
Data from bank-owned messaging service provider Swift shows that renminbi payments in Luxembourg increased 86% in value in July.
The increase is mainly driven by financial transfers, representing 88% of all payments value.
More than 58% of the payments value between Luxembourg and China or Hong Kong is dominated in renminbi. This compares to 42% one year ago.
Luxembourg now ranks second in Europe after France, which ranks sixth in the world, excluding China and Hong Kong.
Patrick de Courcy, deputy chief executive and head of markets and initiatives, Asia Pacific, at Swift notes that there are close to 40 renminbi-denominated bonds listed on the Luxembourg Stock Exchange. Chinese banks have also a “strong presence” in the country, he adds.
In July, the renminbi remained stable in its position as the eleventh payments currency of the world, with a market share of 0.87%.
Overall, however, renminbi payments increased in value by 5.1%. The growth for all payments currencies was 5.4% in July.
Swift says it does not publish the total value of these payments.
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