Taiwan has moved up three positions to become the world's fourth largest Chinese renminbi (RMB) offshore centre.
SWIFT's latest RMB Tracker shows the country experienced a 120 percent increase of its RMB payments over six months (since August 2012).
Taiwan stands fourth out of 136 countries exchanging RMB payments and has beaten United States and Australia in this respect.
Although it is still behind London and Singapore, which are at number one and number two positions respectively, Taiwan can easily threaten the positions of these countries.
Taiwan may more easily beat France that currently occupies the third position in SWIFT's latest RMB Tracker.
"We've been following the RMB developments in Taiwan very closely," said Lisa O'Connor, RMB director at SWIFT. "These are not surprising growth figures given the historic and increasing level of direct activity between the Chinese mainland and Taiwan."
Major offshore RMB clearing centre
Taiwan has all it takes to become the next major offshore RMB clearing centre. Currently, about 44 percent of all payments made between Taiwan and China/Hong Kong are exchanged in RMB.
Six months ago, SWIFT's RMB Tracker placed Taiwan at seventh position out of 131 countries exchanging RMB payments worldwide.
At that time, 24 percent of all payments exchanged between Taiwan and China/Hong Kong were made using the renminbi.
Taiwan has certainly made progress and moved up three positions to reach at its current position allowing domestic companies in the nation to issue RMB-denominated bonds.
"In February, the Taipei branch of Bank of China was assigned as the local RMB clearing bank and the Taiwan Stock Exchange has announced the desire to offer offshore RMB products," said O'Connor. "All of these positive moves should further support the growth of Taiwan's RMB payments."
The SWIFT RMB Tracker provides monthly reporting on key statistics to show the progress made by RMB towards becoming an international currency.
The Tracker was first launched in September 2011.
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