The internationalization of the renminbi is gathering pace as shifting global dynamics reshape currency preferences. With confidence in the US dollar weakening and demand rising for alternative safe-haven assets, the RMB is emerging as an increasingly attractive option for global investors — buoyed by China's economic resilience and the growing cross-border financing needs of Chinese companies expanding overseas.

Zhou Xiaochuan, former governor of the People's Bank of China, said in a keynote speech at a forum in Shanghai on April 3 that the core driver behind changes in the international monetary system lies in the United States' own policy choices. The large-scale use of tariffs, the excessive weaponization of the US dollar through sanctions and regional conflicts have eroded global trust in the dollar, creating room for the development of a more diversified currency system.

Zhou said the current period represents a "golden window" for advancing RMB internationalization. On the one hand, US policies have undermined confidence in the dollar, creating external opportunities for the RMB. On the other hand, China's continued expansion of its goods trade surplus has put upward pressure on the RMB, while capital has shown a trend of returning, helping reduce risks associated with capital account opening.

Zhou suggested seizing this favorable opportunity to steadily advance reform and opening-up, enhance the RMB's usability and capital account convertibility, and optimize the framework for managing capital flows. This includes distinguishing between legitimate cross-border investment and abnormal capital outflows, avoiding excessive controls that could dampen financial vitality, improving cross-border RMB financial infrastructure, and strengthening the global allocation function of RMB assets. He also called for leveraging institutional opening-up to enable the coordinated development of international financial centers such as Shanghai, so that RMB internationalization better matches China's economic strength.

Yang Jun, executive vice-president of Bank of China, said the country's growing role in global trade and economic activity has laid a solid foundation for the international use of the RMB.

In 2025, China's total goods trade reached 45.47 trillion yuan ($6.66 trillion), marking nine consecutive years of growth. China has also remained the world's second-largest import market for 17 consecutive years and the RMB is now the world's second-largest currency for trade financing.

Yang noted that the RMB's stability and credibility are attracting increasing adoption by countries and market participants. The improving financial infrastructures also provide strong support for expanding the RMB's global use, while application scenarios continue to diversify and related products and services are constantly evolving.

In 2025, BOC's domestic branches handled about 18 trillion yuan in cross-border RMB settlements. The bank helped more than 30 overseas issuers launch panda bonds in China, underwriting nearly 38 billion yuan. It also assisted over 80 issuers in issuing offshore RMB bonds with underwriting exceeding 110 billion yuan.

Panda bonds are RMB-denominated bonds issued by overseas institutions in China's onshore market. From the beginning of this year to April 14, overseas institutions had issued a total of 52 panda bonds worth 102.24 billion yuan, up 91.81 percent year-on-year, while the outstanding balance reached 499.73 billion yuan, an increase of 37.64 percent from a year earlier, said market tracker Wind Info.

Mark Yang, head of trading of global financial markets at DBS China, said during an event held by London Stock Exchange Group on Wednesday: "We are seeing growing use of the RMB in bond and investment markets. It is gaining traction as an investment currency, particularly where it aligns with underlying trade exposure and offers low correlation with US dollar assets amid geopolitical tensions."

Yang said that cross-border RMB growth is being driven by trade flows, efficiency demands and improvements in market infrastructure.

DBS is observing several notable trends and breakthroughs. RMB usage continues to expand along real trade corridors, especially between China and the Association of Southeast Asian Nations. At the same time, digitalization is becoming a priority, with market participants seeking faster, simpler and more predictable settlements, driving strong demand for digital solutions that streamline cross-border RMB settlement processes. In parallel, interconnectivity is strengthening through offshore clearing networks and the Cross-border Interbank Payment System.

Tian Lihui, a professor of finance at Nankai University, said the acceleration in panda bond issuance signals a significant strengthening of the RMB's role in international investment and financing, with overseas institutions increasingly willing to hold the Chinese currency and raise long-term funds in RMB.

Tian added that some overseas institutions have already made panda bonds a regular financing channel. This highlights how the RMB's appeal goes beyond exchange rate stability or interest rate differentials, and increasingly stems from the greater convenience and liquidity provided by China's more open financial markets.

Pan Gongsheng, governor of the PBOC, said at a forum on March 22 that China will continue to improve the institutional arrangements and financial infrastructure for the cross-border use of the RMB. The country will pursue diversified monetary and financial cooperation to further develop the offshore RMB market, thereby facilitating cross-border trade, investment and financing activities, he said.

Liu Jun, president of Industrial and Commercial Bank of China, said at the bank's 2025 annual results briefing, "If we talk about the internationalization strategy of Chinese-funded financial institutions today, the central theme must be RMB internationalization."

He emphasized that one of ICBC's key priorities in 2026 is to strengthen integrated global operations.

ICBC will leverage its global network and integrated domestic and foreign currency operations to strengthen global resource allocation and cross-border financial services. It will upgrade RMB-related products and build a comprehensive services system spanning RMB pricing, trading, settlement, clearing, investment, financing, repo and asset management, while seeking breakthroughs in cross-border and offshore finance. The bank will also extend its RMB pricing strengths overseas to enhance the currency's global pricing influence, Liu said.