(23 December 2025 – China) Chinese Renminbi (RMB) denominated debt has reached record issuance as investors and issuers are attracted by low rates, reflecting the RMB’s expanding role as a global funding currency.
China’s overseas bank lending volume has tripled, and “Red Back” funding costs have remained below those of the dollar since 2022. Although international RMB debts remain a small fraction of global debt, the trend indicates a shift toward the RMB in international trade and finance.
The People’s Bank of China (PBoC) has committed to supporting greater financing in the Renminbi (RMB) by international entities as a key driver for hastening the pace of RMB internationalisation.
Beijing has targeted greater RMB usage for international trade and financing for several years with its share of global FX turnover trending higher from a low base to reach about 8.5 percent in Q2 2025 according to the Bank for International Settlements (BIS). The dollar comprises 89 percent of turnover.
“I think this phase is now really more driven by fundamental interest in renminbi funding. There’s more and more international investors who don’t look at this just as an arbitrage, but who really have renminbi allocation and there are some very big anchor orders from outside China. The dollar is at a critical juncture, and diversification is really happening” commented Deutsche Bank Head of China Onshore Debt Capital Markets, Samuel Fischer.