The Renminbi (RMB) has been central to China’s strategic agenda to reshape the global financial landscape. Over the past few decades, China has made significant efforts to promote the RMB for regional and global trade. Despite these efforts, the RMB’s journey towards becoming a fully internationalised currency has faced numerous challenges and setbacks. This brief explores the historical, current, and future use of the RMB in regional and global trade and examines the reasons behind its stalled ambitions for internationalisation.

The development of China's Cross-Border Interbank Payment System (CIPS) represents a significant stride in its ambition to enhance its financial sovereignty and reduce its dependency on Western-dominated financial systems, notably the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and USD-backed trading platforms. As a particular example of China’s work to improve RMB international acceptance, this brief explores how Chinese-developed financial architectures like CIPS are evolving and assesses their potential future trajectory.

Report by the Overseas Development Institute