China’s use of the renminbi in cross-border transactions has reached record highs this year, as closer ties with Russia bolster Beijing’s efforts to internationalise its currency and cut dependence on the US dollar:

International investors held Rmb7.5tn ($1.1tn) of equity and fixed income securities priced in renminbi as of the end of September, up about Rmb760bn from the end of 2020, according to Financial Times calculations

The dollar is not king because it is sound money. There is no alternative. FX turnover 89.2%. Reserves 57.1%. Payments 51%. Foreign-currency bonds 62.9%. The renminbi? 2% of reserves and a closed capital account. De-dollarization is a narrative, not a number

🇨🇳China maintains independent monetary policy; FX market remains stable Since August global markets have been choppy but the renminbi has traded broadly stable-to-firmer with two-way swings and China’s FX market has remained orderly, with cross-border flows showing net inflows. Wang Yifeng, deputy director at Everbright Securities’ research institute, said the Fed’s recent hike widened the US–China yield inversion but had been largely priced in and was accompanied by a noticeable rise in US Treasury yields. He described the Fed move as preemptive, aimed at bolstering market confidence amid sticky inflation. Domestic export prospects remain reasonably certain and consumer inflation in China is mild, so the effect of US tightening on cross-border flows is judged manageable. China’s monetary policy remains accommodative with ample liquidity to support real-economy financing, and the renminbi has shown resilience—rate moves in major economies are judged to have limited direct impact on the currency. (