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For the second month in a row, RMB payments volumes fell.

According to SWIFT, the Chinese RMB lost two places since September, against the South African Rand and New Zealand Dollar, to become world payments currency #17 in October.

"This is not a stellar performance for an emerging currency/economy, it might challenge some analysts’ predictions that the RMB will be a top three currency by 2015," notes SWIFT.

Eighty-one percent of all RMB payments is still processed by financial institutions in Hong Kong. This means that currently the RMB has a rather limited international use, although the value of payments sent and received by countries other than China and Hong Kong has steadily increased again over the last couple of months to 14%.

Though volumes overall are down, there is significant RMB usage and increase with Taiwan, Russia, Indonesia, and Philippines.

"Considering China’s share of 9.6% in world trade in 2010, one could say the RMB is underutilised at the international level and has the potential to develop towards a top global currency," notes SWIFT. "The RMB needs to grow beyond Hong Kong to become truly international."

SWIFT's observations are based on actual payments going over its global network between October 2010 and October 2011.

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