This paper explores factors driving the internationalization of Renminbi (RMB) trading, using data from the 2025 BIS Triennial Survey of global foreign exchange turnover. We analyze both short-term (three-year) trading growth and long-term RMB turnover levels across jurisdictions. Unlike recent studies that struggled to identify sizable effects of real or financial links with China, we find that financial factors, especially banking links with China, play a key role, even over short horizons. These financial links reinforce market-driven "convergence" patterns, whereby RMB trading adjusts based on its under- or over-representation in total currency trading in a given location. However, this convergence is slower than previously reported, while financial drivers have grown in importance. For the long-term geographical distribution of RMB trading, financial links with China, including policy-driven variables such as qualified investor licenses, dominate, though trade links also contribute significantly. We also find that bilateral trade effects are stronger for cross-border RMB trading, and we report new insights on the dynamics in Asian financial centers and trading in spot versus derivatives

Juliana Robbert, Vladyslav Sushko and Frank Westermann

Keywords: geography of currency trading; foreign exchange; renminbi internationalization; cross-border banking (search for similar items in EconPapers)
JEL-codes: F31 F33 G15 G18 (search for similar items in EconPapers)
Date: 2026-04
New Economics Papers: this item is included in nep-mst
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