Renminbi deposits in HK post record rise

Increase due to speculation China will accelerate exchange-rate reforms.

The Hong Kong Monetary Authority said renminbi deposits rose by US$1.5 billion in April to US$110 billion, the seventh monthly increase in a row but the smallest gain since October.

Last month the People’s Bank of China, the central bank, said it will widen the renminbi’s daily trading band in the near future. The renminbi is the 13th most-used currency in the world.

Analysts said there is stronger expectation that renminbi internationalization will accelerate following the Communist Party’s leadership transition in March. They expect the renminbi in Shanghai to climb by 2.1% this year to RMB6.10 per U.S. dollar after the1% rise in 2012.

Hong Kong handled US$44.9 billion of trade settled in renminbi in April, a 19% decrease from March, said HKMA.