China's push to internationalize the renminbi, despite its tiny share of global reserves, is reshaping global finance. While the renminbi holds only 1.9% of global reserves and China maintains a closed capital account, Beijing's infrastructure investments are changing the landscape. The Cross-border Interbank Payment System (CIPS), launched in 2015, and the central bank's mBridge digital currency platform, processing $56bn by late 2025 after a modest pilot, are building alternative payment systems.

These systems, less visible to Swift, are increasingly used for trade finance, where the renminbi's share is roughly 8.5% compared to its 3.1% global payments share. This migration reduces the need for companies to hold dollars, shrinking organic dollar liquidity and raising borrowing costs for non-US firms.