Yuan Internationalisation Accelerates
China's cross-border RMB settlement share — the proportion of the country's international payments processed in renminbi — climbed to a record 52.9% in June 2026, up sharply from below 40% a year earlier, reflecting Beijing's sustained push to deepen the yuan's global role and hedge against dollar-centric payment risks. The yuan itself traded in a narrow band of 6.77 to 6.79 per dollar through July, anchored by the People's Bank of China.
PBOC's Exchange Rate Anchor
The PBOC maintained the RMB within the 6.77–6.79 corridor throughout July, using daily fixing mechanisms and counter-cyclical factors to prevent excessive appreciation or depreciation. The CFETS RMB Index, which tracks the yuan against a basket of trading-partner currencies, held firm — signalling that Beijing values stability above all in the current external environment.
Three Pillars of RMB Internationalisation
- Trade settlement: RMB is now the preferred payment currency for China's commodity trade with Russia, Saudi Arabia and other Belt and Road partners; commodity pricing in RMB is expanding from oil to copper and agricultural products
- Financial market access: The Bond Connect, Stock Connect and Swap Connect schemes continue to expand, with foreign holdings of onshore Chinese bonds rising steadily — providing investment demand for RMB assets that supports the currency structurally
- Digital yuan (e-CNY): Pilot programmes for cross-border digital yuan settlement gained traction at the 2026 International Financial Exhibition in Shanghai, with several central bank bilateral agreements facilitating digital yuan use in cross-border trade corridors
Global Context
The 52.9% settlement share positions RMB among the top cross-border payment currencies globally. However, the dollar remains dominant in global trade finance, commodity pricing and foreign exchange reserves — a reality that limits the pace of further yuan displacement. The current US dollar strength cycle, reflected in the PBOC's fixing decisions, underscores the continued sensitivity of the RMB to external monetary policy dynamics.
Outlook
The combination of a stable yuan (6.77–6.79), record cross-border settlement share and expanding digital yuan infrastructure paints a constructive medium-term picture for RMB internationalisation. As long as the PBOC maintains the anchor and China's capital markets remain attractive to foreign investors, the structural trend toward greater RMB use in trade and investment is likely to continue.