Standard Chartered: Global renminbi usage rises in April, more than doubling in a decade

The global use of the renminbi continued to expand between February and April compared with the preceding three-month period, according to Standard Chartered's revised Renminbi Globalization Index, which rose from 212.1 in January to 224.8 in April.

The increase underscores the currency's growing international role, with overall usage now more than twice the level seen about 10 years ago.

The London-based international banking group announced on Friday that it has revised the methodology of its proprietary Renminbi Globalization Index, which tracks the global use of the renminbi, to better reflect the currency's international usage as well as the relative importance and representativeness of the index's underlying components.

The recent rebound in the index reflects, on the one hand, stronger global demand for renminbi settlement amid conflict in the Middle East. On the other hand, it has been supported by policy measures introduced by the Chinese mainland and Hong Kong to advance renminbi internationalization, Standard Chartered said. Notably, the Hong Kong Monetary Authority has doubled the total size of the RMB Business Facility to 200 billion yuan ($29.5 billion), effective Feb 2.

The facility ensures sufficient liquidity to support the expansion of offshore RMB business and provides funding for trade finance, capital expenditure and working capital loans. In addition, growing issuance volumes of dim sum bonds and a broader range of issuers have helped support the development of the offshore renminbi bond market.

During the Feb-April period, the index rose by 12.7 points. The cross-border renminbi payments component contributed 3.8 points to the increase, while the offshore renminbi foreign exchange trading component contributed 4.5 points. The dim sum bonds component added 3.1 points to overall index growth. Continued issuance of offshore renminbi government bonds and central bank bills has enhanced the size and liquidity of the offshore renminbi bond market. Meanwhile, the offshore renminbi deposits component contributed about 1 point to the index's overall increase during the period.

Jean Lu, CEO and executive vice-chairperson of Standard Chartered Bank (China) Ltd, said, "The internationalization of the renminbi is entering a new phase, transitioning from a currency for trade settlement to one that also serves financial functions such as hedging, investment and financing. Its international standing will also be significantly enhanced, offering a more diverse, stable and viable option for the international monetary system."

This shift stems fundamentally from the increasingly tangible needs of businesses and individuals in cross-border trade, investment, financing and asset allocation, Lu said.

A recent survey by Standard Chartered of 300 companies worldwide found that 23 percent of respondents' revenue and 25 percent of their costs were already exposed to the renminbi, yet only 14 percent of their debt is denominated in the Chinese currency.

"This indicates that there is still significant room for growth in the use of the renminbi in financing and treasury management," Lu said.

China's 15th Five-Year Plan (2026-30) calls for accelerating the efforts in building itself into a financial powerhouse. Standard Chartered expects both the central government and the Hong Kong Special Administrative Region government to introduce additional measures to support renminbi internationalization in the years ahead.

Strengthening Hong Kong's position as an international financial center will help expand the currency's global role. For example, if Hong Kong further develops into an international gold trading hub, the renminbi's international standing could be enhanced. As Hong Kong and the Chinese mainland deepen market connectivity and build an integrated gold market ecosystem, the renminbi is also expected to play a greater role in gold pricing and trading, Standard Chartered said.