Index shows rise in global acceptance of RMB

A major index measuring global acceptance of the Chinese currency rose 4.8 percent in June from the previous month.

The Standard Chartered Renminbi Globalisation Index reached 1,050 in June, up 65 percent year-on-year, withstanding macro and market uncertainties, the bank said on Wednesday.

The bank said the rise was mainly driven by an increase in offshore yuan foreign exchange turnover, offsetting a mild reduction in yuan-denominated cross-border payments through Hong Kong and Singapore on the back of falling Chinese exports in June.

The index remains on track to reach at least 1,200 by the end of the year, it said.

"But the pace of increase in the second half is likely to ease from the first, or at least until China emerges from its recent growth soft patch and the currency resumes its appreciation trend."

It added the new Free Trade Zone initiative in Shanghai, recently approved by the State Council, will be a positive to all offshore centers.

"The plan is likely to include experimentation on freer cross-border commodity and capital flows, as well as greater yuan convertibility by businesses operating in the zone."

Standard Chartered launched the index in November 2012.

It covers offshore renminbi business in Hong Kong, London, and Singapore.