2025/05/21 by Monique Taylor · 1 voice · 1 citation
Economics, Econometrics and Finance · #Global Financial Crisis and Policies
paper · doi:10.1177/18681026251342258
openalex publication_date 2025/05/21 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper examines the geopolitical dimensions of China's strategy to internationalise the renminbi (RMB) and reduce reliance on the U.S. dollar. Far from a purely financial initiative, RMB internationalisation is a strategic response to the geopolitical and economic risks of a dollar-centric order. Through instruments such as the petroyuan, bilateral currency swaps, the Cross-Border Interbank Payment System, and the digital yuan, China seeks to embed the RMB within global trade, investment, and payment infrastructures. Anchored in geopolitical frameworks such as the Belt and Road Initiative and BRICS+ cooperation, these efforts form part of a wider strategy to extend China's economic influence and reduce exposure to dollar weaponisation. While the RMB's role in global reserves remains limited, China's selective and incremental approach prioritises trade-based internationalisation over capital account liberalisation. Set against accelerating de-dollarisation and deepening multipolarity, the paper analyses how China's RMB strategy is reshaping global systems of exchange, across finance, trade, and payments.