An index measuring global use of the yuan reached a new high in March, mainly pushed by trade settlement and other international payments across London, Singapore and Hong Kong.
The Standard Chartered Renminbi Globalisation Index reached a new high of 892 in March, rising 6.2 percent month-on-month, the Standard Chartered Bank said in a press release on Tuesday.
It increased from a revised 839 in February, or 65.6 percent year-on-year.
"Stronger demand for Dim Sum bonds, larger yuan deposits in Hong Kong and higher daily offshore yuan foreign exchange turnover in Singapore and London were also seen during the month, thanks in part to a policy push across geographies," it said.
London is set to finalize its largest Renminbi swap arrangement with the People's Bank of China soon, while Singapore recently doubled its Renminbi swap line with PBOC to gear up for a bigger offshore yuan role in the Association of Southeast Asian Nations.
The Hong Kong monetary authorities' recent rule change should boost offshore yuan liquidity that will in turn support Dim Sum bonds, the bank said.
Standard Chartered launched the index in November. The index covers the top three markets in offshore yuan business including Hong Kong, London, and Singapore. It measures business growth in four key areas: deposits (denoting store of wealth), Dim Sum bonds and Certificate of Deposits (as vehicles for capital raising), trade settlement and other international payments (unit of international commerce) and foreign exchange (unit of exchange).
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