Standard Chartered: Renminbi has growth potential but won't challenge US dollar

Standard Chartered executives state that the renminbi (RMB) has significant potential to expand its role in global trade and finance as Chinese companies increase their overseas presence. Jean Lu, CEO and executive vice-chair for China at Standard Chartered, noted that the currency's adoption will be driven by commercial factors such as improved infrastructure, supportive policies, and greater liquidity.

Despite this growth, Lu emphasized that the RMB is unlikely to challenge the US dollar’s dominant position in the foreseeable future. She cited constraints such as limited liquidity in offshore RMB markets and Chinese capital controls as primary obstacles. While the RMB may not replace the US dollar, Lu suggested it could potentially compete with other second-tier currencies like the Japanese yen or the British pound.

Currently, RMB transactions account for over 50 percent of Chinese cross-border receipts and payments for trade and investment. However, according to International Monetary Fund data, the yuan accounted for only 2 percent of global foreign exchange reserves in the first quarter of 2026, while the US dollar maintained 57 percent of global reserves.