China’s economy grew faster than expected at the start of the year but it remains to be seen if it signals a solid recovery trend as the crisis-hit property sector bears down on growth

The global use of Renminbi is influenced by geopolitics, macroeconomic conditions, infrastructure, and technology

Surveyed institutions continue to adopt RMB in cross-border trade, driven by cost benefits and foreign exchange risk management

The majority of institutions surveyed attribute their increased Renminbi usage to China’s investments and partnerships facilitated by the Belt and Road Initiative

The impact of the Renminbi as a commodity currency extends beyond trade transactions, influencing its broader usage in the global financial landscape

Despite China’s trade surplus, the RMB is depreciating against the USD and Euro due to lower yields on RMB-denominated assets, but this trend is expected to reverse in 2024 as interest rates align and exports recover