Is the Chinese Yuan Already a Global Reserve Currency? BRICS and Dollar Shortages Drive RMB Rise

According to a report from Inside China Business (@Inside_China_Business), the international use of the Chinese yuan (RMB) for trade settlement is growing rapidly. The channel's analysis highlights that nearly $2 trillion worth of China's goods trade was settled in renminbi in 2025, a significant increase driven by several structural factors.

Key drivers include ongoing US dollar shortages in many emerging markets, sanctions that push countries like Russia out of the dollar system, and the expansion of the BRICS bloc, which is fostering alternative financial channels. As noted in the video, this represents not just a theoretical shift but a practical one for businesses. The report cites the example of Siglan Elevator, a Chinese firm that settles 30% of its international sales in RMB, giving it a competitive advantage in markets where clients lack dollar liquidity.

Central to this internationalisation are the People's Bank of China's currency swap agreements with over 40 foreign central banks. These agreements, which provide immediate access to renminbi liquidity, allow partner countries to settle trade and manage exchange rate risk outside the Western banking system. A case study highlighted is Zambia, which now accepts royalty payments from Chinese mines in yuan, using the currency to service debts and purchase Chinese imports—a model for other nations in Africa and the Global South seeking greater financial sovereignty and reduced transaction costs.

Source: The Chinese Yuan is already a global reserve currency, and Chinese companies are taking advantage (Video: https://www.youtube.com/watch?v=m_zMQ4Q6zAs)