Challenging Dollar Dominance? The Geopolitical Dimensions of RMB Internationalisation

This paper examines the geopolitical dimensions of China’s strategy to internationalise the renminbi (RMB) and reduce reliance on the U.S. dollar. Far from a purely financial initiative, RMB internationalisation is a strategic response to the geopolitical and economic risks of a dollar-centric order. Through instruments such as the petroyuan, bilateral currency swaps, the Cross-Border Interbank Payment System, and the digital yuan, China seeks to embed the RMB within global trade, investment, and payment infrastructures. Anchored in geopolitical frameworks such as the Belt and Road Initiative and BRICS+ cooperation, these efforts form part of a wider strategy to extend China’s economic influence and reduce exposure to dollar weaponisation. While the RMB’s role in global reserves remains limited, China’s incremental approach prioritises trade-based internationalisation over capital account liberalisation. Set against accelerating de-dollarisation and deepening multipolarity, the paper analyses how China’s RMB strategy is reshaping global systems of exchange, across finance, trade, and payments.

Monique Taylor is a University Lecturer in World Politics in the Faculty of Social Sciences at the University of Helsinki. She holds a doctorate in International Political Economy from the University of Queensland and has previously worked at several global top 50 universities in Singapore and Australia.