Well-known Chinese news site Sina recently reported that SWIFT (Society for Worldwide Interbank Financial Telecommunication) February numbers indicated that the Chinese currency, the RMB, saw a 2.2 percent decline in the total volume of global settlements. This data may indicate that investors and companies are slowing down on using RMB. Based on Dealogic’s data, the number of offshore RMB bonds issued since the beginning of this year is showing a significant decline as well. In the meantime, an HSBC report also showed, in a year-over-year comparison, that fewer global companies are using RMB for cross border settlements. Even Chinese companies are switching to other currencies, such as the Euro, to issue their bonds overseas. In the past year, the Chinese government made a great effort to expand the use of RMB in the international market. However it seems the expectation that the RMB will depreciate is becoming stronger.
Source: Sina, March 30, 2015