The Standard Chartered Renminbi Globalization Index (RGI) climbed 3.26 percent on a monthly basis to 2,407 in September, boosted by China's reform of daily central parity rate calculation in August, said Standard Chartered.
The RGI, covering four key areas including bank deposits, dim sum bonds and certificates of deposit, trade settlement and foreign exchange, broadly measures offshore RMB activities in Hong Kong, London, Singapore, Taiwan, New York, Seoul and Paris.
China's reform of onshore RMB pricing has been completed and RMB has met most requirements to join the special drawing rights (SDR). But if China's economy continues to be sluggish, the market will maintain the expectation of RMB depreciation, said the bank. It added that the country's foreign exchange trading volume may turn into negative growth in the fourth quarter, and it would keep the forecast that the index would decline in the quarter though cross-border RMB payment stay stable.
Looking forward, the bank expected the policies recently launched under China's cooperation with Taiwan, Singapore and Germany would benefit RMB internationalization.
Latest comments