The Chinese yuan (renminbi or RMB) is the primary global currency gaining significant traction in cross-border trade settlements as part of de-dollarization efforts.
- As of early 2026, the yuan has been steadily increasing its share in trade finance and global payments, often driven by its usage in bilateral trade with Russia and oil-exporting nations, reducing reliance on the US dollar.
Key Trends in De-dollarization (2025–2026):
- Yuanization: China's renminbi (RMB) has seen increased adoption, with over 54% of China's cross-border transactions settled in RMB by 2025. It has increasingly been used for commodity purchases, including oil and coal, with nations like Saudi Arabia, Brazil, and Russia.
- BRICS+ Local Currency Usage: The BRICS bloc (now including Iran, Egypt, Ethiopia, and the UAE) has intensified efforts to use native currencies, such as the Indian rupee, Brazilian real, and Russian ruble, for intra-group trade.
- Alternative Payment Systems: Countries are adopting alternative infrastructures to SWIFT, such as China's Cross-Border Interbank Payment System (CIPS), which has grown in usage for yuan clearing, and the proposed BRICS Pay system.
- Digital Currency Development: The use of central bank digital currencies (CBDCs) for cross-border settlements, such as the mBridge project involving China, UAE, Hong Kong, and Thailand, is being accelerated to bypass Western-led financial networks.
While the US dollar remains the dominant global currency, the yuan’s share in trade settlement has risen significantly, notably overtaking the euro in 2023 to become a key alternative.