Renminbi

US dollar banknotes are seen in this illustration taken 10 March 2023. (Dado Ruvic/Illustration/Reuters)

De-risking too: The world's efforts to de-dollarise

Despite all the talk of de-dollarisation and some movement towards it, the US dollar remains the dominant global currency for now, and it will be an uphill task to shift away from it. Lianhe Zaobao correspondent Lai Oi Lai speaks to academics and financial experts to find out more about the world's pursuit of de-dollarisation as a way of risk management.
An advertisement poster promoting China's renminbi (RMB) or yuan , U.S. dollar and Euro exchange services is seen outside at foreign exchange store in Hong Kong, China, 13 August 2015. (Tyrone Siu/Reuters)

RMB internationalisation growing in momentum with possibility for new currency

With an increasing number of countries and groupings being open to making trade settlements in currencies other than the US dollar, de-dollarisation has gained some momentum and this may also aid China’s efforts for RMB internationalisation. But China may have no intention of letting the RMB replace the US dollar. In that context, would a new “BRICS currency” be better fit for purpose?
Banknotes of Chinese renminbi and US dollar are seen in this illustration picture taken 29 September 2022. (Florence Lo/Illustration/File Photo/Reuters)

The US’s dilemma: Dollar dominance or re-industrialisation

In response to former US President Donald Trump’s recent scare about China trying to “displace the US dollar as the number one currency throughout the world”, academic Han Heyuan says that a certain equilibrium is maintained by the US suffering a trade deficit but safeguarding dollar hegemony. If the US wants to bring manufacturing back to the US, it may not be able to export dollars the way it used to, and cannot hope for the dominance of the US dollar to hold.
People wearing protective masks cross a street outside a shopping mall in Kuala Lumpur, Malaysia, 6 September 2021. (Lim Huey Teng/Reuters)

Malaysia resurfacing the Asian Monetary Fund: Will the idea take off this time?

An Asian Monetary Fund was first mooted by Japan during the Asian Financial Crisis in the late 1990s, but did not quite take off then. Now, with Malaysian Prime Minister Anwar Ibrahim resurfacing the proposal during his recent trip to China, is the prospect of an AMF more likely today than it was 26 years ago?
Russian President Vladimir Putin and Chinese President Xi Jinping make a toast during a reception following their talks at the Kremlin in Moscow, Russia, on 21 March 2023. (Pavel Byrkin/Sputnik/AFP)

Chinese academics: China-Russia relations are reaching new heights

Rather than the old “forced friendship” marked by “warm politics, cold economics”, China and Russia’s relationship has evolved to a new phase powered by strong internal dynamics manifesting political and economic warmth.
Brazil's President Luiz Inacio Lula da Silva and First Lady Rosangela "Janja" da Silva (both with flowers in hand) being greeted on arrival by Chinese Vice Minister of Foreign Affairs Xie Feng in Shanghai, China, 12 April 2023. (Ricardo Stuckert/Handout via Reuters)

Slowly but surely: China partnering Brazil to weaken US dollar hegemony?

After making headway with French President Emmanual Macron last week, China is set to further its economic cooperation with Brazil’s President Luiz Inácio Lula da Silva, notably with the decision to use their local currencies for cross-border trade instead of the US dollar. While there is still a long way to go for RMB internationalisation, China has certainly upped its game.
Chinese RMB banknotes are seen behind an illuminated stock graph in this illustration taken on 10 February 2020. (Dado Ruvic/Illustration/File Photo/Reuters)

What’s in store for RMB internationalisation in 2023?

The RMB is now one of the most actively traded currencies in the world and is set to gain further traction globally this year, as the People’s Bank of China implements the government’s strategy to boost the currency’s use overseas, challenging the dominance of the US dollar in the long term.
This illustration shows Chinese yuan banknotes, 30 May 2022. (Dado Ruvic/Reuters)

China's efforts to internationalise RMB gaining a foothold in SEA

NUS academic Xu Le explains why China's project to internationalise the RMB still has much room to grow. In that regard, the ASEAN countries could play a role, given their desire to be less reliant on the US dollar.
A picture illustration of the banknotes of the euro, HK dollar, US dollar, Japanese yen, British pound and Chinese yuan. (Jason Lee/File Photo/Reuters)

Escalating China-US confrontation will accelerate RMB internationalisation

Peking University PhD student Xiong Lan believes that as US-China tensions ratchet up from competition to confrontation, it is likely that the process of internationalising the renminbi (RMB) will be accelerated. The next ten years will be crucial, if China is to reach targets such as for the RMB to exceed 10% market share of international currencies by 2029 and account for 30% of global reserves in the long run. What obstacles stand in the way?