Is "RMB internationalization" equivalent to "de-dollarization"?

BEIJING, Nov. 15, 2024 /PRNewswire/ — A news report by China.org.cn on RMB internationalization:

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Is “RMB internationalization” equivalent to “de-dollarization”?

The internationalization of the RMB is not equivalent to “de-dollarization”, and the change in the two currencies’ status in the international context is not co-relevant.

According to the rankings released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the U.S. dollar remains the most popular currency in the world, with its payment share accounting for 47.08%, substantially more than other payment currencies.

In recent years, the RMB has become more internationalized. The change has something to do with the deepening economic and trade cooperation between China and ASEAN countries and the Belt and Road Initiative partner countries, which spurred the need for transactions, investment and financing using the RMB. What’s more, global business entities’ need to manage risks arising from the complicated international landscape which also facilitated the internationalization of the RMB. In 2023, cross-border RMB settlements reached 52.3 trillion yuan, a year-on-year increase of 24%. The increasingly internationalized RMB embodies China’s vitality in high-level opening-up, while driving the balance of payments between China and the U.S. to a rebalance.