Standard Chartered China CEO Jean Lu said there is "no way" the yuan will challenge the U.S. dollar as a global reserve currency, though it may gain ground against the yen and pound. Speaking at a media roundtable in Singapore, Lu cited "limited liquidity in offshore markets" as a constraint on renminbi internationalization, noting offshore holdings total less than 2 trillion yuan, with almost half in Hong Kong. The U.S. dollar made up 57% of global foreign exchange reserves in the first quarter of 2026, up one percentage point from the previous quarter, while the yuan accounted for just 2%, up from 1.95%, according to the International Monetary Fund. Beijing's most recent five-year plan, released in March, outlines efforts to expand the currency's international role through Panda and Dim Sum bonds, and the People's Bank of China has tapped institutions including Deutsche Bank as an offshore clearing bank and launched new repo facilities for foreign central banks. Settlement volumes between China and Southeast Asia surged to 8.9 trillion yuan, or $1.3 trillion, in 2025, a 50.7% increase, according to a March report from Standard Chartered, and in June Singapore Airlines issued a 1.5 billion yuan Dim Sum bond in its debut in the offshore yuan market.
Standard Chartered PLCStandard Chartered's own report is cited showing China-Southeast Asia settlement volumes surged 50.7% to 8.9 trillion yuan, a positive yuan-internationalization datapoint for the bank, but the CEO's remarks stress limited offshore liquidity constraints.
Deutsche Bank AktiengesellschaftThe People's Bank of China has tapped Deutsche Bank as an offshore yuan clearing bank, expanding its role in renminbi clearing.
Standard Chartered China CEO says the yuan cannot challenge the dollar as a reserve currency, with the dollar at 57% of global reserves vs yuan's 2%, reinforcing dollar strength over the yuan.
Singapore Airlines Limited
