Amid persistent global geopolitical tensions and a critical window of profound restructuring in the international monetary system, the cross-border use of the renminbi (RMB) and the attractiveness of RMB-denominated assets continue to strengthen. The internationalization of the RMB has now entered a new phase marked by accelerated expansion.
A recent report by Standard Chartered Bank indicates that nearly 30% of central banks plan to increase their holdings of renminbi reserves, with the RMB becoming increasingly embedded in the global liquidity architecture. The renminbi continues to make breakthroughs in cross-border use cases such as investment and financing, as well as pricing and settlement. Its roles as a safe-haven asset, a financing currency, and a reserve currency are becoming more prominent, signaling a clear acceleration in its internationalization.
The outline of the 15th Five-Year Plan explicitly calls for advancing RMB internationalization, including expanding its use in international trade and investment and financing, as well as improving the level of capital account liberalization. Meanwhile, the central bank has elevated RMB internationalization to a major business and reform priority, with concrete action plans to be formulated and dynamically assessed and refined. Since the launch of RMB cross-border trade settlement in 2009, the internationalization process has spanned 17 years. Various signs indicate that this emerging international currency is approaching a critical “coming-of-age” moment.
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