According to the RMB monthly report and statistics released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) on Thursday (18th), Russia has jumped to the third largest payment market for the offshore RMB. Since the outbreak of the Russian-Ukrainian war in February, Russia has continued to accelerate the pace of de-dollarization, and the RMB has also taken advantage of the trend.
The latest data released by SWIFT on Thursday shows that the current offshore RMB payment and settlement business is only ranked in Hong Kong, China and the United Kingdom, which is higher than the domestic ranking in Russia. But Russia will not be able to squeeze into the monthly list published by SWIFT (only the top fifteen) until February 2022.
According to SWIFT statistics, in terms of amount, Russian companies and banks participated in nearly 4% of international RMB payments in July, much higher than 1.42% in June; but in February this year, the number was close to zero.
This phenomenon to some extent reflects that Russia is accelerating the pace of de-dollarization, and the economic sanctions imposed on Russia by Western countries are also a major reason for Russia’s gradual fading out of the dollar-based global financial system. In addition, hundreds of large Western companies have withdrawn or significantly scaled down their operations in Russia.
According to SWIFT, in July 2022, the renminbi still ranks fifth in terms of the amount of global payment currencies, accounting for 2.2%, up from 1.86% in the same period last year. The top four are the US dollar (41.19%), the euro (35.49%), the British pound (6.45%) and the Japanese yen (2.82%). In addition, the Russian ruble, which ranked 16th in December 2021, has since disappeared from the top 20 list.
Russia is actively developing a financial payment system similar to SWIFT, trying to find another way out, opening special accounts in some banks, and continuing to trade major export commodities such as oil with China, India, Turkey and other countries.