(12 October 2026 – Singapore) RMB internationalisation is entering a new phase with financial flows steadily taking centre stage over trade settlement, DBS reports.
The RMB overtook the US Dollar as the dominant currency for China’s cross border settlements in 2023, reaching a record 56 percent in March 2026, and has become the world’s second-largest trade finance currency. By mid-2026, cumulative cross border RMB current account settlements exceeded RMB127.9 trillion while 33 percent of China’s merchandise trade was settled in RMB, up from less than one fifth in 2022.
Broader payment networks lower frictions, extending RMB use across emerging markets. Lower capital market controls supports RMB demand as cross border investment channels deepen. Competitive funding costs support broader participation in Panda and Dim Sum markets also. Policy-led connectivity enables deeper two-way flows and market integration with Hong Kong and Singapore emerging as key offshore hubs for RMB internationalisation.
“The direction of travel is clear. RMB internationalisation is moving beyond trade settlement towards a broader role in payments, investment, funding and reserves, supported by deeper capital-market connectivity and expanding offshore liquidity” stated DBS Chief China Economist, China & Hong Kong, Mo Ji.
“We expect this process to remain gradual. Beijing is likely to favour targeted opening and stronger onshore-offshore connectivity while retaining controls over cross-border capital flows. Lower RMB funding costs and a widening international issuer base should provide additional support. Greater access to onshore assets and deeper offshore markets should reinforce two-way RMB flows, helping the currency evolve from predominantly trade-settlement orientation to one for global funding, investment, and reserves.“
East & Partners closely tracks the intersection of FX and trade as part of the group’s long running Asia Business FX and Asia Trade & Supply Chain Finance services, based on direct interviews with major importers and exporters across ten countries in Asia including Hong Kong and Singapore.
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