In the latest report by Shenzen Business Daily, Standard Chartered Bank revealed on March 18th the data of the Standard Chartered RMB Global Index (RGI), showcasing the remarkable progress in the internationalization of the Renminbi (RMB). In 2023, the index recorded a growth rate of 33.4%, the fastest since 2014, highlighting the strong upward momentum of the RMB as a global currency. By January 2024, the index had reached 4,823 points, maintaining a growth trend for nine consecutive months, moving towards the significant milestone of 5,000 points.
In the offshore RMB market, both foreign exchange trading and cross-border payments maintained a strong growth momentum. Notably, in the fourth quarter of 2023, the total amount of goods trade settled in RMB grew by 33% year-on-year, and in January 2024, this figure reached a new high of 1.08 trillion RMB, surpassing the growth rate of China's total goods trade.
Moreover, the offshore RMB bond market achieved significant milestones in 2023, with the total issuance volume increasing by 44% year-on-year to 599 billion RMB, marking a historic high. The net issuance volume also significantly rose by 68% to 325 billion RMB. Looking at the issuers, domestic enterprises, domestic financial institutions, and foreign financial institutions accounted for 17%, 16%, and 11% of the offshore RMB bond market share respectively, with the People's Bank of China issued offshore RMB central bank bills leading at 27%.
The Standard Chartered RMB Global Index, launched by Standard Chartered Bank in 2012, aims to comprehensively assess the internationalization of the RMB through key dimensions such as offshore RMB deposits, cross-border RMB payments, offshore RMB foreign exchange transactions, offshore RMB-denominated bond issuances, and foreign-owned onshore assets. The continuous climb of this index not only shows the potential of the RMB as an international currency but also reflects the growing confidence and interest of global investors in RMB assets. As China's economy continues to open up and integrate further into the global economic system, the international status and role of the RMB are expected to be further strengthened and recognized.
