Standard Chartered RMB globalisation index reaches a new high of 809 in January

It's up 8.2% from December's 748.

In a statement, Standard Chartered announced that the Standard Chartered Renminbi Globalisation Index, or the RGI, posted another new high of 809 in January, up 8.2% from December’s 748.

In January, trade settlement and other RMB-denominated international SWIFT payments re-emerged as the biggest contributor as payments through Hong Kong, Singapore and London hit record highs. Cross-border Renminbi payments through Singapore rose 30% month-on-month while payments through London rose 40% month-on-month.

The second-biggest contributor to the January RGI was Dim Sum bonds and Certificate of Deposits. The new Formosa bonds, or Taiwan offshore Renminbi-denominated bonds, will add impetus to this positive story. We expect Taiwan could build up a sizeable Renminbi deposit pool of CNY100-150 billion by end-2013.

This sets a strong positive tone for a more broad-based RGI expansion throughout 2013. The RGI is expected to reach at least 1,200 by end of this year.

Standard Chartered launched the RGI in November 2012. The Index covers the top three markets in offshore RMB business: 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). As the Renminbi further internationalises, there is capacity to include additional parameters and markets.