Why London is number one in RMB FX transactions?

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Latest data from SWIFT shows that London remains the lead location for trading the Chinese renminbi (RMB) amongst other financial markets.

Data from SWIFT’s RMB Tracker shows that London has retained its position as the preeminent foreign exchange (FX) and payment centre globally. .

As of March 2017, SWIFT’s data shows that 36.3% of the RMB FX transactions (excluding China) are conducted with the UK. Hong Kong is second (29.3%) and the United States and France third (7.3%) ahead of Singapore (5%). There has also been a steady increase in RMB FX transactions over the last five years, with the number of FX trades in RMB reaching more than 13 million in 2016.

Trading and payments in RMB in the UK also continues to grow, supported by usage of the RMB in both global and domestic markets. While payments to and from the UK transverse a multitude of markets around the world, SWIFT data shows that the UK-US corridor was the most important, accounting for 38% of international payments sent and received by the UK in March 2017.

“This data demonstrates that London is a top choice for international banking activity, said that Javier Pérez-Tasso, Chief Executive, Americas and UK, SWIFT”.

He added that “Despite a decline in global FX trading volumes and broader market uncertainties, London’s role as a global financial centre and international payments hub remains on a strong footing.”

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