Statistics from the Society for Worldwide Interbank Financial Telecommunication network shows the Philippines that as of June 30 ranks first in Southeast Asia in terms of growth rate of RMB clearing volume, ahead of countries like Singapore, Indonesia and Malaysia.
The total volume of RMB cleared in the Philippines in 2020 is CNY 302,511 million, a 138-percent increase compared to last year’s total of CNY 127,234 million. This makes the Philippines the 22nd largest RMB clearer among 46 countries and regions around the world.
Deng Jun, country head of Bank of China Manila, said the growth could be attributed to the improved understanding of the currency by the local market. “There is an increased awareness about the benefits from using RMB as a settlement and payment currency between China and the Philippines,” he said.
“More and more enterprises are finding that direct conversion of renminbi to peso, instead of converting it first to US dollar, can help save on friction costs and hedge FX (foreign exchange) exposure risks,” he said.
Bank of China’s Manila branch is the officially designated RMB clearing bank for the Philippines and a member of the Philippine RMB Trading Community. “Our confidence in the continuous growth in RMB clearing volume comes from the increasing trade volume between China and the Philippines,” said Deng.