China’s renminbi has become the main currency for payments between China and the rest of the Asia-Pacific region, more than tripling in use over the past three years and outstripping the Japanese yen, the US dollar and the Hong Kong dollar in the process, according to data from the clearing system, Swift.

The shift demonstrates that the Asia-Pacific region is at the forefront of the renminbi’s gathering acceptance as a currency for international trade settlement and investment. The Chinese currency was used in January-April for 31 per cent of payments between China (including Hong Kong) and the rest of the Asia-Pacific region, up from 7 per cent back in April 2012, Swift said.

The currency’s ascent came mostly at the expense of the US dollar, which was used in just 12.3 per cent of payments in April, down from 21.7 per cent in April 2012, Swift figures show. The yen and the Hong Kong dollar were also displaced, though to a lesser degree, by the rise of the renminbi (see table).