China Accelerates Yuan Internationalization Amid De-Dollarization Push

Beijing's campaign to reduce reliance on the US dollar has entered a decisive phase, with yuan-denominated loans hitting record levels globally. The MOVE comes as Western sanctions target Chinese banks over alleged ties to Russian defense sectors, prompting China to insulate its trade flows through currency diversification.

Renminbi-denominated assets held offshore more than doubled in the past decade to $484 billion, according to SAFE data. The Bank for International Settlements reports a $373 billion surge in yuan loans to emerging markets since 2020, with Kenya, Angola and Ethiopia among nations swapping dollar debts for yuan financing.

"This isn't just about sanctions-proofing trade—it's a strategic play for monetary sovereignty," said Adam Wolfe of Absolute Strategy Research. The yuan's share in global trade finance now approaches 5%, still dwarfed by the dollar's 40% dominance but growing at a compound annual rate of 30% since 2020.