2026/07/29 by Ryan Weldzius, Joshua Buckson
Economics, Econometrics and Finance · #Global Financial Crisis and Policies #Market Dynamics and Volatility #Sustainable Finance and Green Bonds
paper · doi:10.1017/s1049096526102352
openalex publication_date 2026/07/29 · openalex created_date 2026/07/30 · openalex updated_date 2026/07/30
ABSTRACT Structural shifts in the global economy are reshaping the foundations of international currency power. This article explores how the green transition, geopolitical realignment, and sustained US protectionism could interact to transform the global currency hierarchy, with a particular focus on the US dollar and the Chinese renminbi (RMB). We highlight two key drivers of currency usage: (1) the liquidity and availability of a currency for cross-border transactions; and (2) the strategic economic and political alignment between currency issuers and their partners. Considering developments in green value chains, evolving alliances, and trade policies, the article outlines how China’s growing role in critical minerals, infrastructure finance, and alternative financial systems can enhance the internationalization of the RMB. Concurrently, US protectionism and withdrawal from multilateralism may open up space for regional currency diversification. These trends point to an increasingly fragmented and multipolar international monetary system, in which currency power will have a central role in shaping the future global order.