RMB gradually gaining greater acceptance

By the Editorial Team · Thursday, October 1, 2026

China is steadily expanding the global use of its currency, the renminbi (RMB), through initiatives like offshore yuan markets, currency swap agreements, and the digital RMB, with Hong Kong playing a pivotal role as the primary offshore hub. While the RMB’s share of global finance is growing, experts believe it will complement rather than replace the dominant U.S. dollar, anticipating a future with a more diversified international currency system.

China’s currency, the renminbi (RMB), is gradually gaining greater acceptance in global trade and finance, driven by Beijing’s efforts to internationalize the yuan and reduce the country’s reliance on the U.S. dollar. Authorities see widespread use of the RMB as a way to enhance financial independence, mitigate risks from foreign sanctions, lower transaction costs for Chinese firms, and increase China’s influence on the global stage.

Currently, the U.S. dollar dominates international finance, comprising roughly 57% of global currency reserves and accounting for about 54% of trade value, according to the International Monetary Fund (IMF). The Society for Worldwide Interbank Financial Telecommunication (Swift) estimates the dollar represents between 50% and 59% of global payments. In contrast, the RMB constitutes about 2% of global reserves, handles over 8% of trade, and makes up around 3% of global payments. These figures may understate the RMB’s use because they do not fully capture transactions conducted through China’s Cross-border Interbank Payment System (CIPS). In 2025, CIPS processed more than 8.4 million transactions valued at over 180 trillion yuan (US$26.8 trillion).

The RMB’s internationalization is supported by multiple channels. Offshore yuan, often referred to by the market code CNH, has expanded in Southeast Asia and Latin America. Over 30 countries host RMB clearing banks, and China maintains currency swap agreements with more than 30 foreign central banks. The digital RMB, launched in 2021, adds another dimension to facilitating cross-border payments. Additionally, RMB-denominated debt instruments, such as “panda” bonds issued within mainland China by foreign entities and “dim sum” bonds issued offshore, have grown in popularity.

Hong Kong remains central to the RMB’s expansion as the largest offshore hub for yuan liquidity and settlement. It provides vital market access, a broad suite of financial products, and infrastructure for funding, collateral, and risk management. The city’s role is evolving beyond deposit and settlement functions to become a comprehensive gateway connecting international investors with mainland markets. Industry experts emphasize Hong Kong’s capacity to maximize yuan usage across borders as a key factor in the currency’s growing footprint.

Major financial institutions have praised China’s integration of market access, offshore liquidity, and payment infrastructure as critical to the RMB’s rise. However, experts caution that the dollar’s entrenched position, supported by deep capital markets, treasury liquidity, and extensive global financing networks, will likely prevent the yuan from displacing it as the world’s primary reserve currency in the near future. Instead, a more diversified global reserve system may take shape.

To sustain growth, some challenges remain. Experts highlight the need for a more open capital account, improved financial infrastructure, deeper and more liquid RMB asset markets, and robust mechanisms to manage capital flows. These measures, alongside continued coordination between Mainland China, Hong Kong, and international markets, are seen as essential for the RMB’s ongoing internationalization.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.