Making of a global currency: new regional pathways in the rise of the Chinese Renminbi

DR. PEREDY Zoltán, DR. BELYÓ Pál, DR. VÍGH László, JIA Hao

Making of a global currency: new regional pathways in the rise of the Chinese Renminbi

Wydanie online nr 2026/01 (69), data wydania 01.05.2026

Keywords: Renminbi internationalization; Emerging markets; Panda bonds; Currency hierarchy; Central and Eastern Europe; Financial integration

Abstract: This review study focuses on the evolving internationalization of the Chinese Renminbi (RMB) within the global monetary system, with particular emphasis on emerging market dynamics and Central and Eastern European engagement. Drawing on an extensive review of theoretical and empirical literature and secondary data from international financial institutions, the study evaluates the RMB’s functions as a medium of exchange, unit of account, and store of value in cross-border trade, finance, and official reserves. The analysis highlights the post-2022 acceleration of RMB usage in international settlements, onshore and offshore markets, trade finance, while identifying persistent structural constraints, including partial capital account convertibility, exchange rate management, and institutional transparency. Special attention is devoted to policy-driven mechanisms supporting RMB diffusion, such as currency swap agreements, offshore clearing infrastructure, and the Belt and Road Initiative (BRI). The paper contributes to the literature by incorporating the case of Hungary, focusing on the establishment of an RMB clearing centre and the issuance of panda bonds as instruments linking the RMB to European emerging markets. The findings suggest that RMB internationalization is advancing through a gradual, network-based strategy rather than abrupt displacement of dominant currencies. The study concludes that sustained progress depends on continued financial reforms, credibility building, and deeper integration of emerging markets into RMB-denominated financial networks.