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China makes constant progress in RMB internationalization
By Qiu Haifeng
China’s Renminbi(RMB) has constantly expanded its international circle of friends as China sees better economic development and a higher level of opening up, playing a more important role in cross-border payment, investment and financing, exchange reserves and invoicing.
A Chinese official revealed that the country will further improve the fundamental systems for RMB settlements in cross-border investment and financing transactions, enhance the opening-up of China’s foreign exchange and financial market and ensure better access to it, and keep promoting the internationalization of the RMB in an orderly manner.
On April 26, the Argentine government declared that it would pay for imports from China with RMB. Argentina’s Economy Minister Sergio Massa said this indicated further activation of the currency swap agreement between China and Argentina, which helps Argentina strengthen its foreign exchange reserves and is of important significance for the country to better its economic situation.
Previously on February 7, China’s central bank, the People’s Bank of China (PBOC), announced that it had signed with its Brazilian counterpart a memorandum of cooperation on setting up RMB clearing arrangements in Brazil.
Two months later, the Industrial and Commercial Bank of China (ICBC), authorized by the PBOC as an RMB clearing bank in Brazil, has processed the first cross-border RMB settlement transaction in the South American country at its local branch there, which marked substantial progress of the ICBC’s cross-border RMB business in Brazil.
At the end of March this year, the first yuan-settled liquefied natural gas (LNG) trade was completed, a big step of China’s exploration in the cross-border yuan payment in petrol and gas trade.
It is reported that the first international LNG transaction settled in the Chinese currency was made between China National Offshore Oil Corporation and France’s TotalEnergies. Approximately 65,000 tons of LNG imported from the United Arab Emirates was traded.
According to statistics, China’s cross-border receipts and payments settled in RMB totaled 42 trillion yuan ($5.91 trillion) in 2022, an increase of 3.4 times compared to 2017, and accounted for nearly half of the country’s total cross-border receipts and payments. An obvious rise in the cross-border RMB settlements was reported in the first quarter this year, too.
Besides, the PBOC has authorized 31 RMB clearing banks in 29 countries and regions, and signed bilateral currency swap agreements with central banks or monetary authorities in 40 countries and regions, with a total value of more than 4 trillion yuan.
“Cross-border settlement is one of the important indicators demonstrating the internationalization of the RMB. The Chinese currency is used in more and more countries and regions for settlement and payment, which mirrors that it has been further internationalized,” said Wang Jiaqiang, a senior researcher with the Bank of China Research Institute.
The RMB is also getting popular globally as a reserve currency.
According to a recent report issued by Brazil’s central bank, the RMB became an international reserve currency of Brazil in 2019. As of the end of 2022, the proportion of the RMB in Brazil’s international exchange reserves reached 5.37 percent, exceeding the proportion of the euro at 4.74 percent, which marked that the RMB became Brazil’s second-largest international reserve currency.
Over 80 central banks or monetary authorities have listed the RMB as an international reserve currency, including Brazil’s central bank. The RMB has retained its position as the fifth-largest reserve currency, and its weighting in the basket of currencies that make up the International Monetary Fund Special Drawing Rights－an international reserve asset also known as the SDRs ranked third.
“More and more central banks or monetary authorities are including RMB in their foreign exchange reserves, which fully reflects the demand of the market. In the past years, foreign exchange reserves held by central banks around the world were mostly in U.S. dollars. However, ‘putting all eggs in one basket’ is obviously to the disadvantage of the stability of the international market as the U.S. currency faces more and more uncertainties these years. The RMB is gradually recognized as a reserve currency, and it offers a new and reliable choice for central banks,” said Zhang Huanbo, a researcher with the China Center for International Economic Exchanges.
Insiders believe that the RMB has achieved new breakthroughs and progress in internationalization this year.
With the establishment of RMB clearing banks and local currency swap networks, the development of offshore RMB market, the opening of domestic financial market and the improvement in the overseas layout of Chinese financial institutions, the RMB has preliminarily shown the network effect of its international use.
Besides, the investment and risk-hedging functions of RMB assets have been gradually enhanced, and enterprises are more willing to use RMB in cross-border trade, investment and financing to avoid the risk of currency mismatch. The international monetary system is more diversified.
By Fabian Apechihin
The 2026 Constitution Amendment Bill has moved to the state level following its consideration by the National Assembly, paving the way for state legislatures to consider the proposed amendments.
The development comes amid renewed attention on constitutional reform and ongoing discussions over proposed changes to Nigeria’s governing framework.
Meanwhile, the House of Representatives has defended FCT Minister Nyesom Wike over allegations surrounding borrowing by the Federal Capital Territory Administration.
House spokesperson Akin Rotimi Agbese, speaking in an interview with Channels Television, rejected claims that Wike had undertaken borrowing without the knowledge or approval of the National Assembly.
Agbese said the FCT minister could not independently create a sovereign borrowing obligation, stressing that public borrowing is subject to constitutional, statutory and administrative procedures.
“Wike has committed no infraction in borrowings. There is no basis for the allegation that he has been borrowing money behind the back of the National Assembly,” Agbese said.
He explained that borrowing to finance infrastructure was not unlawful where the required approvals and procedures had been followed.
“Borrowing for infrastructure development is not unlawful in itself, provided the prescribed approvals and procedures are followed,” he added.
The House spokesperson further argued that an increase in the FCT’s debt profile should not automatically be interpreted as evidence of illegal borrowing, citing the scale of infrastructure projects being undertaken in Abuja under Wike.
According to Agbese, the key issue is whether the appropriate approvals were obtained for specific borrowing transactions, rather than simply whether the FCT’s overall debt profile has increased.
The comments come as scrutiny continues over public borrowing, infrastructure financing and the legal procedures governing government debt at both the federal and sub-national levels.
By Fabian Apechihin
The 2026 Constitution Amendment Bill has moved to the state level following its consideration by the National Assembly, paving the way for state legislatures to consider the proposed amendments.
The development comes amid renewed attention on constitutional reform and ongoing discussions over proposed changes to Nigeria’s governing framework.
Meanwhile, the House of Representatives has defended FCT Minister Nyesom Wike over allegations surrounding borrowing by the Federal Capital Territory Administration.
House spokesperson Akin Rotimi Agbese, speaking in an interview with Channels Television, rejected claims that Wike had undertaken borrowing without the knowledge or approval of the National Assembly.
Agbese said the FCT minister could not independently create a sovereign borrowing obligation, stressing that public borrowing is subject to constitutional, statutory and administrative procedures.
“Wike has committed no infraction in borrowings. There is no basis for the allegation that he has been borrowing money behind the back of the National Assembly,” Agbese said.
He explained that borrowing to finance infrastructure was not unlawful where the required approvals and procedures had been followed.
“Borrowing for infrastructure development is not unlawful in itself, provided the prescribed approvals and procedures are followed,” he added.
The House spokesperson further argued that an increase in the FCT’s debt profile should not automatically be interpreted as evidence of illegal borrowing, citing the scale of infrastructure projects being undertaken in Abuja under Wike.
According to Agbese, the key issue is whether the appropriate approvals were obtained for specific borrowing transactions, rather than simply whether the FCT’s overall debt profile has increased.
The comments come as scrutiny continues over public borrowing, infrastructure financing and the legal procedures governing government debt at both the federal and sub-national levels.
By Fabian Apechihin
The Peoples Democratic Party (PDP) has reaffirmed its intention to contest the 2027 presidential election despite the decision of Federal Capital Territory Minister, Nyesom Wike, to support President Bola Ahmed Tinubu’s re-election bid.
The party said Wike’s decision was personal and did not alter its position to participate in the presidential election with its candidate, Senator Sandy Onor. PDP National Publicity Secretary, Jungudo Haruna Mohammed, made the clarification on Wednesday.
According to the party, a recent conversation between Wike and Onor should not be interpreted as a political negotiation between the minister and the PDP.
“He told Nigerians that Sandy is his friend. And they only had a friendly discussion within the umbrella of friendship. So, that is just a personal discussion between him and his friend,” Mohammed said.
He added that Wike’s support for Tinubu did not prevent the PDP from fielding candidates for the presidential, governorship and legislative elections.
Wike had earlier clarified that his support in 2027 was specifically for Tinubu’s presidential re-election and did not amount to an agreement that the PDP would withdraw from other electoral contests. He also said he never promised that the PDP would abandon its candidates for governorship, National Assembly and State House of Assembly elections.
“I said I will support the President from day one. I never told Mr President I will join APC,” Wike said.
The minister also maintained that his proposed Rainbow Coalition was not an arrangement with the All Progressives Congress (APC), but rather a platform through which politicians from different parties could mobilise support for Tinubu’s re-election.
The issue has generated disagreement with some APC governors, who have expressed concern about a political arrangement that could affect the party’s candidates at other levels.
APC Progressive Governors’ Forum Chairman, Hope Uzodinma, said the governors would not support any alliance or arrangement that could weaken the APC or adversely affect its candidates.
Meanwhile, APC presidential campaign council spokesperson Ima Niboro has urged Wike and APC governors to end their public exchanges and concentrate on political mobilisation.
“When I said tone down the rhetoric, I do not mean stop working. Stop talking, go and work,” Niboro said.
He urged political leaders to strengthen their grassroots structures and engage directly with voters rather than continue exchanging statements in the media.
“All this shouting is not taking anybody anywhere. Go and work. Go and establish your authority on your political base,” he said.
2026 Constitution Amendment Bill Moves to States
2026 Constitution Amendment Bill Moves to States
2027: PDP Insists on Presidential Contest Despite Wike’s Support for Tinubu
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