BEIJING: China has outlined a renewed push to expand the global role of the renminbi, also known as the yuan, alongside new measures aimed at strengthening cross-border settlement channels and building financial infrastructure in Shanghai. In an essay published by the Communist Party journal Qiushi, President Xi Jinping called for the renminbi to develop into a global reserve currency and for China to build what he described as a strong currency, language that aligns with long-running policy goals to widen international use of the yuan.
China’s central bank and other regulators have tied parts of that agenda to Shanghai’s role as an international financial hub. Official releases have described initiatives that include establishing an international operation center for the digital renminbi, building platforms intended to support cross-border digital payments and related services, and expanding pilots that link trade finance and settlement to Shanghai’s free trade zone arrangements. Authorities have also referenced steps to broaden the range of products and services available to support cross-border commerce.
A key element of China’s payments infrastructure is the Cross-Border Interbank Payment System, or CIPS, which provides clearing and settlement services for renminbi transactions. CIPS has reported a growing network of direct and indirect participants spanning domestic and foreign banks. Disclosures in 2025 listed 174 direct participants and 1,509 indirect participants as of May 2025, and public summaries of prior-year activity put 2024 processing value at about 175.49 trillion yuan, underscoring the scale of renminbi settlement routed through the system.
China has also been involved in cross-border testing of central bank digital currency settlement through the mBridge project, a wholesale platform developed with participation from multiple monetary authorities. Public reporting has cited participation that includes the People’s Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates, and the Saudi Central Bank. Updates on the project have cited cumulative transaction volumes exceeding $55 billion, reflecting activity in pilot use cases involving cross-border payments and settlement.
Infrastructure for cross-border settlement
Policy actions have also targeted wider use of the yuan in corporate activity. The People’s Bank of China has urged state-owned enterprises to prioritize renminbi settlement in overseas operations, an instruction aimed at increasing the currency’s use in trade and investment flows tied to Chinese firms. Such directives sit alongside existing channels for cross-border yuan settlement used by banks and corporates, including arrangements that support invoicing, payments, and financing in the Chinese currency.
Regulators have paired settlement efforts with steps focused on market infrastructure and product development in Shanghai. Official statements have described measures that include building an international digital-yuan operation center, creating an interbank trade repository, promoting offshore trade finance pilots in the Lingang area, developing products described as free trade offshore bonds, and enhancing functions for free trade accounts. Authorities have also referenced studying renminbi foreign exchange futures trading, part of a broader effort to expand risk-management tools available in onshore markets.
Global currency metrics
Available global indicators continue to show the US dollar holding the largest role in reserves and payments. The International Monetary Fund’s COFER data for the third quarter of 2025 placed the dollar at about 56.92% of allocated global foreign exchange reserves, a figure that remains far ahead of other currencies. Separate monthly reporting by SWIFT for November 2025 ranked the renminbi sixth by value for global payments, with an overall share around 2.94%, and about 2.20% when eurozone internal payments were excluded.
The yuan’s international profile includes its inclusion in the IMF’s Special Drawing Rights basket, a status granted in 2016 that recognized the currency’s use in international transactions. At the same time, China maintains controls on cross-border capital flows and manages the currency’s trading band, features that distinguish the renminbi from fully convertible reserve currencies. China’s initiatives, taken together, describe an approach centered on expanding settlement channels, digital payment infrastructure, and market tools, while global reserve and payment data provide the current baseline for the currency’s role.