The rise of renminbi creates opportunities for banks
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The rise of renminbi creates opportunities for banks

China taking over the dollar
Photo: iStock

While the dollar’s international supremacy is unchallenged for now, the wider landscape is shifting. Companies are raising more funding in renminbi and the currency’s use in international payments and settlements is growing.

The power and predominance of the US dollar has long been seen, in developed and emerging nations alike, as both a comfort and a threat. Past attempts by other currencies, notably the euro and the yen, to challenge the greenback ultimately fell short.

China’s renminbi (RMB) has been viewed for more than a decade as the coming currency power. Yet for many reasons – capital controls and an onshore 2015 stock market crash – the push by Beijing to internationalize the yuan has promised more than it has delivered.

Now, geopolitical tensions, high US interest rates and Washington’s willingness to use its currency to penalize those with whom it disagrees, have compelled those who dislike the US and resent the power of the dollar to get vocal again.

The most cogent criticism came at a summit of the grouping of Brics nations (Brazil, Russia, India, China and South Africa) in August, when Brazilian president Luiz Inacio Lula da Silva called for the creation of a common currency to facilitate internal trade and investment and reduce vulnerabilities.



larissa ku 960.jpg
Senior reporter for Asia
Larissa Ku is a senior reporter for Asia. She joined Euromoney in 2023. Based in Hong Kong, she has spent more than a decade covering private equity, banking, treasury and fintech across various brands, including Asian Venture Capital Journal – where she won State Street Institutional Press Awards Asia Pacific 2023’s technology journalist of the year – Corporate Treasurer and DigFin.
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