Stan­chart un­veils Ren­minbi Glob­al­i­sa­tion In­dex

The Pak Banker - - Front Page -


Bank­ing gi­ant Stan­dard Char­tered to­day an­nounced the launch of the Stan­dard Char­tered Ren­minbi Glob­al­i­sa­tion In­dex (RGI) - the first in­dus­try bench­mark that ef­fec­tively tracks the progress of Ren­minbi-based busi­ness ac­tiv­ity world­wide.

Sched­uled for re­lease on a monthly ba­sis, the In­dex of­fers cor­po­rates and in­vestors a quan­tifi­able view of the lat­est trends, size and lev­els of off­shore ac­tiv­ity that are driv­ing the adop­tion of the Ren­minbi (RMB) as an in­ter­na­tional re­serve cur­rency.

To com­ple­ment the In­dex, Stan­dard Char­tered an­nounced the re­sults of its first quar­terly Off­shore Ren­minbi Cor­po­rate Sur­vey, wherein com­pa­nies across Asia and Europe shared their motivations and ex­pressed a strong ap­petite for us­ing RMB off­shore in the next six months. Go­ing for­ward, the sur­vey will pro­vide a qual­i­ta­tive in­di­ca­tor to forecast the di­rec­tion of the mar­ket. The In­dex cov­ers three mar­kets which dom­i­nate the 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 RMB in­ter­na­tion­alises, there is ca­pac­ity to in­clude ad­di­tional pa­ram­e­ters and mar­kets, align­ing the In­dex with fu­ture devel­op­ment.

The In­dex works by sourc­ing data from sev­eral in­dus­try and of­fi­cial sources and lead­ing providers of mar­ket data. The in­dex is based from De­cem­ber 2010, the point from which suf­fi­cient mean­ing­ful in­for­ma­tion be­came avail­able to pro­duce a re­li­able mea­sure.

The RGI shows that be­tween De­cem­ber 2010 and Septem­ber 2012 the in­ter­na­tion­al­i­sa­tion of the RMB saw a 7-fold in­crease. All four pa­ram­e­ters and the emer­gence of new mar­kets contributed to the im­pres­sive growth, with trade­set­tle­ment and other in­ter­na­tional pay­ments be­ing the key driv­ing force be­hind the in­crease.

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