Brief
Standard Chartered China CEO says yuan will not overtake dollar in reserves
Jean Lu argued the yuan's share of global reserves remains low despite Beijing's push for international use.
By Felo News Desk · Published
Standard Chartered China CEO Jean Lu told a media roundtable in Singapore on Wednesday that the Chinese yuan is unlikely to challenge the US dollar’s dominance in global reserve holdings during her career.
Lu said the dollar accounted for 57% of foreign‑exchange reserves in Q1 2026, according to the IMF, while the yuan’s share was just 2%, up marginally from 1.95% the previous quarter. She attributed the yuan’s limited traction to “limited liquidity in offshore markets” and capital controls, noting that less than 2 trillion yuan is held abroad, about half of it in Hong Kong.
Lu added that the yuan may still affect other second‑tier currencies, suggesting it could pose competition to the yen or pound. She highlighted recent moves by the People’s Bank of China, such as partnering with Deutsche Bank as an offshore clearing bank and launching new repo facilities for foreign central banks, as part of its internationalisation drive.
She also pointed to growing yuan use in Southeast Asia, citing a 50.7% rise in settlement volumes between China and the region in 2025 and Singapore Airlines’ June issuance of a 1.5 billion‑yuan Dim Sum bond.
Key facts
- The US dollar made up 57% of global foreign‑exchange reserves in Q1 2026, per the IMF. (fortune.com)
- The Chinese yuan accounted for 2% of global reserves in the same period, up from 1.95% the prior quarter. (fortune.com)
- Jean Lu said limited offshore liquidity and capital controls hinder the yuan’s reserve growth. (fortune.com)
- Settlement volumes between China and Southeast Asia rose 50.7% in 2025, reaching 8.9 trillion yuan. (fortune.com)
- Singapore Airlines issued a 1.5 billion‑yuan Dim Sum bond in June 2026. (fortune.com)
Sources
- [1] fortune.com — originally reported as “'No way' the yuan challenges the U. S. dollar—though the yen and the pound may have more to fear, says Standard Chartered's China CEO”
