Standard Chartered CEO Says Yuan Won't Challenge US Dollar
Jean Lu states the Chinese yuan is unlikely to replace the US dollar as the primary global reserve currency due to strict capital controls.
The Chinese yuan is unlikely to challenge the U.S. dollar as the primary global reserve currency in the foreseeable future, according to Jean Lu, CEO of Standard Chartered China. Speaking at a media roundtable in Singapore, Lu noted that the U.S. dollar maintained a 57% share of global foreign exchange reserves in the first quarter of 2026, while the yuan held only 2%.
Lu attributed the yuan's limited progress to strict Chinese capital controls and a lack of liquidity in offshore markets. While she dismissed the possibility of the yuan displacing the dollar during her career, she suggested the currency could potentially compete with second-tier reserve currencies such as the Japanese yen and the British pound.
To increase the currency's international footprint, the People's Bank of China is utilizing Dim Sum and Panda bonds and appointing offshore clearing banks, including Deutsche Bank. The yuan is seeing significant growth in Southeast Asia, where settlement volumes reached 8.9 trillion yuan in 2025. This expansion is further driven by geopolitical tensions and U.S. sanctions on Russia and Iran, which have prompted trading partners to seek alternatives to the dollar.
