China’s Renminbi Surpasses U.S. Dollar in Cross-Border PaymentsChina’s Renminbi Surpasses U.S. Dollar in Cross-Border Payments
China’s own currency, the Renminbi (RMB), has grown significantly in its role for international payments, particularly for the nation’s cross-border transactions.
Goldman Sachs Research reveals a historical moment in March when the RMB surpassed the U.S. dollar as the dominant currency in China’s cross-border payments.
The research showed the RMB’s cross-border settlement share reaching 47% in 2021, a significant increase credited largely to the rise in foreign trading of RMB assets.The researc
Despite this domestic success, the RMB’s global footprint remains relatively small, accounting for only around 2.5% of global payments as of May 2023.Despite this domestic succes
As the world’s second-largest economy, China’s capital controls and the non-freely tradable nature of the RMB may hinder its progress as a “store of value” and “unit of a
The U.S. dollar maintains its position as the leading currency in international payments, accounting for 43% of such transactions as of May 2023.The U.S. dollar maintains its posit