China Macro: RMB Internationalization Blog (5): From Johannesburg to Budapest

Research evidence excerpt

China Macro: RMB Internationalization Blog (5): From Johannesburg to Budapest

25 June 2026

China Macro

▪ Risk diversification: In a volatile global economic and geopolitical

environment, the relative stability of the RMB's exchange rate and

interest rates is highly appreciated by local corporates for liability

management and controlling financing risks.

The accessibility of RMB financing has also improved significantly. Many local

firms noted that the channels for obtaining RMB funding are now more open and

diverse than before. Commercial banks and development finance institutions

have become more willing to provide RMB loans. Additionally, avenues for raising

funds through Panda bonds and Dim Sum bonds are expanding. Finally, the

growing depth of the RMB hedging market has further encouraged the use of

RMB financing.

The lack of attractive RMB investment channels remains a constraint. Due to a

scarcity of high-yielding and liquid offshore RMB investment options, corporates

tend to convert the RMB they raise into other currencies rather than hold RMB

assets beyond their immediate liquidity needs.

Financial Institutions: Building RMB Connectivity

The financial sector is a critical enabler of the RMB's expanding role, with both

central banks and market participants adapting to the new landscape.

Central banks are preparing for RMB’s wider use. Although the RMB's use in

global transactions is still limited and its share of global foreign exchange

reserves remains modest, central banks are already preparing for its wider

adoption. They have established dedicated teams to manage RMB reserve assets

and are showing keen interest in connecting to RMB financial infrastructure and

liquidity provision tools.

Market financial institutions are actively exploring opportunities.