As of Q3 2023, RMB has surpassed USD to become the top currency in China’s cross-border payments. It has also replaced the Euro to become the second-largest currency in the global trade financing market.

RMB debt financing is the biggest driver behind the rising use of RMB. Many borrowers, including sovereigns and corporates, have started replacing their USD debt with RMB. 

Chinese authorities are happy to export RMB despite concerns related to capital outflow. Looking forward, we expect RMB to gain market share amid the global dedollarisation.