Global Times recently reported that new trading participants pushed the RMB trade volume much higher in London. This significantly strengthened London’s position as one of the primary RMB offshore trading centers. Based on SWIFT data, London’s trading volume now represents 62 percent of the entire RMB trading activities outside Mainland China and Hong Kong. London won the market share mainly from Singapore and from the U.S., Switzerland and France. The daily RMB trade volume has reached US$5 billion, which is double last year’s number. HSBC currency strategist Wang Ju suggested that many central banks, private banks, hedge funds, and companies are showing a strong interest in the RMB. Data from the Bank for International Settlements (BIS) also demonstrated a rapid growth in RMB trading, which is quickly catching up to the volume of the Canadian dollar and the Swiss Franc.
Source: Global Times, October 10, 2013