Taiwan retained its position as the fourth-largest hub for financial transactions in the Chinese currency in April, though it could be surpassed by New York in the future, according to an index released by British banking group Standard Chartered Bank.
The Standard Chartered Renminbi Globalization Index — which measures yuan business growth in four key areas: deposits, capital-raising tools, international commerce and foreign exchange — reached 1,807 in April, up 4.1 percent from March and an increase of 91.8 percent from one year earlier, Standard Chartered said in a report on Friday.
HONG KONG NO. 1
Hong Kong remained the largest offshore yuan market, accounting for 65.7 percent of the index, followed by London’s 14.5 percent, Singapore’s 9.2 percent, Taipei’s 5.4 percent and New York’s 5.2 percent.
Also, four of the five offshore yuan centers covered in the index — Hong Kong, Singapore, London and Taipei — recorded a month-on-month drop in cross-border yuan payments, according to Standard Chartered.
New York, the new offshore yuan hub, recorded a 13 percent month-on-month increase in cross-border payments, signifying it has plenty of catch-up potential, the bank said in the report.
Tony Phoo (符銘財), a Taipei-based economist at Standard Chartered, said he expects the overall size of yuan deposits in Taiwan to rise to between 300 billion and 350 billion yuan (US$48 billion and US$56 billion) this year, nearly twice the 182.6 billion yuan recorded last year.
“We believe the anticipation of long-term Chinese yuan appreciation is one of the main drivers of this growth,” Phoo said.