The internationalization of the renminbi ( RMB ) is accelerating, driven by China’s expanding global economic influence and strategic financial innovations. As numerous Chinese corporations extend their global footprint, they are actively pursuing business opportunities in regions ranging from Southeast Asia to the Middle East, and from Europe to South America.

This expanding international presence has spurred a growing demand for cross-border payments in RMB, with both Chinese entities and multinational companies increasingly leveraging the currency for trade-related transactions.

The rising adoption of RMB for cross-border payments signifies a broader trend towards facilitating settlements in renminbi, which not only strengthens business relationships with Chinese firms but also enhances the currency’s standing in global trade.

By reducing reliance on currencies like the US dollar, this shift positions the RMB as a pivotal player in international finance, fostering deeper economic integration between China and its trading partners.

Digital moves

Complementing these efforts is the development of the e-CNY, which introduces a digital dimension to the RMB’s internationalization strategy.

The e-CNY is evolving with innovative use cases, including pilot programmes in China that enable seamless payments from e-CNY wallets, facilitating 24/7 real-time transactions.

Once received, funds can be transferred directly into designated settlement accounts, streamlining payment processes for businesses and individuals alike.

This pilot not only demonstrates the e-CNY’s potential to enhance domestic efficiency but also underscores its broader implications for cross-border transactions.

As adoption expands, the e-CNY could reduce friction in international trade settlements, making the RMB more appealing for global commerce and investment.

By merging cutting-edge technology with financial infrastructure, China is paving the way for the RMB to compete with traditional global payment systems.

Rate differentials

Parallel to these advancements, the RMB is gaining traction as a financing currency, buoyed by the significant interest rate differentials between it and the US dollar.

With RMB financing often offering more competitive pricing compared with dollar-denominated alternatives, instruments like dim sum bonds and panda bonds are increasingly being adopted for capital raising.

For instance, companies are using cross-currency swaps to synthetically convert USD loan obligations into RMB, effectively reducing their cost of capital while hedging currency risk.

This trend reflects not only a strategic shift towards leveraging favourable interest rates, but also growing confidence in the RMB’s stability as a financing tool.

By mitigating exchange rate volatility and lowering borrowing costs, businesses are strengthening their financial positions, further embedding the RMB into global capital markets.

Accelerating role

Together, these developments underscore the RMB’s accelerating role in reshaping the international financial landscape. The currency’s expanding use in cross-border trade, coupled with the innovative potential of the e-CNY and its rising prominence in global financing, positions the RMB as a viable alternative to traditional systems dominated by the US dollar and euro.

As businesses and financial institutions increasingly adopt RMB-denominated tools to optimize costs and manage risks, the currency is poised to deepen its influence in international trade and investment.

This evolution not only strengthens economic ties between China and its partners, but also contributes to a more multipolar global economy.

Ultimately, the RMB’s journey towards internationalization reflects China’s broader ambition to integrate its financial systems with the world – a transformation that promises to redefine the future of global finance.

Companies leveraging on the RMB

As part of The Asset’s Treasurise Awards 2025 the board of editors were presented a number of award winning renminbi internalization solutions where companies worked with their service provider to leverage the Chinese currency to their advantage.

For example, Singapore ( Cogeneration ) Steel worked with its service provider to obtain a cross-currency export L/C discounting in CNH against USD receivables at spot FX rates, where the company can benefit from cost savings through CNH cross-currency financing.

Vibrantz Technologies likewise wanted to enhance connectivity between its business in China and headquarters in the US setting up a domestic RMB cash pool with the solution allowing the client to explore the use of cross-border RMB trade settlement for international trade between foreign companies and its China entities.

Finally, another interesting solution was one by Volvo Car Group where the company worked with its service provider to establish a cross-border RMB settlement process under the capital account, enabling digital RMB domestic payments to beneficiaries using cross-border RMB capital funds, enhancing operational efficiency and shortening turnaround time.

These were just some of the interesting award winning renminbi internalization solutions presented to the board of editors. For the complete list of winning treasury solutions, please click here.

To see the full list of Best Renminbi Banks by market please click here. These winners demonstrate the leading institutions that are able to provide sound renminbi services outside of mainland China.

To learn more about these awards, please click here.

To join the in-person annual celebratory dinner in Hong Kong on May 21, 2025 please contact us at celebrate@theasset.com.

Stay tuned in the coming days as we announce the winners of The Asset Triple A Treasurise Awards 2025.