Index of yuan global use reaches new high in Jan

An index measuring the global use of the yuan posted a new high in January as trade settlements and other yuan-denominated international payments re-emerged as the biggest contributor, Standard Chartered Bank said on Thursday.

The Standard Chartered Renminbi Globalization Index reached 809 in January, up 8.2 percent from December's 748, the bank said.

Payments through Hong Kong, Singapore and London all hit record highs, it said. Cross-border renminbi payments through Singapore rose 30 percent from a month earlier, while payments through London went up 40 percent.

The second-biggest contributors to the index in January were dim sum bonds and certificate of deposits.

The new Formosa bonds, or Taiwan offshore renminbi-denominated bonds, will add impetus to this positive story, it said.

"We expect Taiwan could build up a sizeable renminbi deposit pool of 100 to 150 billion yuan by the end of 2013," the bank said.

The bank added the figures set a strong positive tone for a more broad-based index expansion throughout 2013, as the index is expected to reach at least 1,200 by end of the year.

Launched in November 2012, the index covers the top-three markets for the offshore yuan business, which are Hong Kong, London, and Singapore. It also measures business growth in four areas: deposits, dim sum bonds and certificate of deposits, trade settlement and other international payments, and foreign exchange.