Index of yuan global use reaches new high in Jan
Updated: 2013-03-08 16:32
By Wang Xiaotian (chinadaily.com.cn)
An index measuring the global use of the yuan posted a new high in January as trade settlements and other yuan-denominated international payments re-emerged as the biggest contributor, Standard Chartered Bank said on Thursday.
Payments through Hong Kong, Singapore and London all hit record highs, it said. Cross-border renminbi payments through Singapore rose 30 percent from a month earlier, while payments through London went up 40 percent.
The second-biggest contributors to the index in January were dim sum bonds and certificate of deposits.
The new Formosa bonds, or Taiwan offshore renminbi-denominated bonds, will add impetus to this positive story, it said.
"We expect Taiwan could build up a sizeable renminbi deposit pool of 100 to 150 billion yuan by the end of 2013," the bank said.
The bank added the figures set a strong positive tone for a more broad-based index expansion throughout 2013, as the index is expected to reach at least 1,200 by end of the year.
Launched in November 2012, the index covers the top-three markets for the offshore yuan business, which are Hong Kong, London, and Singapore. It also measures business growth in four areas: deposits, dim sum bonds and certificate of deposits, trade settlement and other international payments, and foreign exchange.