China Accelerates Global De-dollarisation Push as Renminbi Lending Surges to Record Levels

BEIJING: China is accelerating its de-dollarisation strategy by dramatically expanding global use of the renminbi in lending, trade, and finance. External renminbi loans, deposits, and bond investments by Chinese banks have quadrupled to more than Rmb3.4 trillion (US$480 billion) over the past five years, signalling Beijing’s intent to reduce reliance on the US dollar and strengthen financial sovereignty.

According to the Bank for International Settlements, renminbi lending to developing nations rose by US$373 billion in four years, with countries such as Kenya, Angola, and Ethiopia converting dollar debts into renminbi. The currency’s share of global trade finance has also surged to 7.6 per cent, second only to the dollar.

Global De-dollarisation

Beijing’s Cross-Border Interbank Payment System (CIPS) now processes over Rmb40 trillion in transactions quarterly, reflecting a growing shift from the Swift network. Simultaneously, China is opening more channels for foreign investors to trade renminbi assets, including new repo market access and bond connect schemes through Hong Kong. Analysts told FT Beijing is not seeking to replace the US dollar but to create a more balanced, multi-currency global system.

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