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China Aims to Boost RMB’s Global role, Challenging Dollar’s Reign
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China signals push for RMB internationalization, aiming to reshape global monetary order and reduce reliance on the US dollar.">
Shanghai, China – Top Chinese financial authorities have recently articulated their strategy for a more balanced global monetary system, signaling a resolute effort to elevate the international standing of the Renminbi (RMB). This initiative, discussed at the annual Lujiazui Forum, aims to lessen the world’s reliance on the U.S. dollar and foster greater participation in global financial governance.
china’s Vision for a Multipolar monetary System
Pan Gongsheng, Governor of the People’s Bank of China, emphasized at the Lujiazui Forum on June 18, 2025, the growing global discourse surrounding monetary system reforms. A central theme is reducing the excessive dependence on any single nation’s currency [[1]].
Did You Know? The RMB is also known as the Chinese Yuan, with CNY or CNH as its international symbols [[2]].
The dollar’s dominance, largely unchallenged as World War II, has faced scrutiny, notably after fluctuations in its exchange rate against major currencies like the euro, Pound, and Swiss Franc. These currencies experienced a decline of over 10% against the dollar following the start of the trump management.The dollar index itself saw an approximate 8% decrease that year, nearing a three-year low.
Referencing recent comments by European Central Bank President christine Lagarde, pan Gongsheng noted increasing uncertainty surrounding the U.S. dollar’s long-term dominance. Lagarde anticipates a more prominent role for the Euro in the international monetary landscape.
RMB’s growing Influence
Since 2008, the RMB has steadily gained international traction, now holding the position of the world’s second-largest trade financing currency and third-largest payment currency. Pan Gongsheng envisions a future monetary system characterized by coexistence, competition, and checks and balances among several sovereign currencies.
Pro Tip: Keep an eye on currency exchange rates if you’re involved in international trade. You can use tools like XE Currency Data API to monitor fluctuations [[3]].
In terms of cross-border payments, the global system is diversifying, moving away from a single currency-led model. Furthermore, Pan Gongsheng highlighted the underrepresentation of emerging markets and developing countries in international financial organizations relative to their economic significance. He alluded to the impact of unilateral policies on the governance and operations of these organizations.
Strategic Measures for RMB Internationalization
Following China’s elevation of financial power to a strategic priority in 2023, President Xi Jinping outlined six core elements for a robust financial system, with a “strong currency” at the forefront.
To further the RMB’s internationalization, Pan gongsheng announced eight financial measures to be implemented in Shanghai. These include establishing a digital RMB international operation center, promoting the digital RMB’s global use, developing free trade offshore bonds, and expanding financing avenues for high-caliber enterprises.
Financial Opening and Market Access
Li Yunze, Director of the State Administration for Financial Regulation, showcased China’s financial opening achievements, citing data on foreign insurance companies’ market share and the proportion of derivatives business in the Chinese market.
China intends to replicate and promote institutional opening practices from free trade zones and ports, supporting foreign institutions’ participation in more financial pilot projects. The country also aims to align with international high-standard economic and trade agreements, exploring broader and deeper opening-up initiatives.
Expert Perspectives on RMB’s Future
Chen Bo, a senior researcher at the National University of Singapore’s Institute of East Asia, noted that while China has long pursued RMB internationalization, the current global context, marked by unilateralism, makes it more pressing
