Global finance is entering a new era. The long-standing dominance of the US dollar is showing signs of strain as political conflicts and financial sanctions push countries to seek alternatives. The world needs a multi-polar international monetary system to strengthen resilience and safeguard stability. In other words, no single currency should unilaterally dominate. Recent evidence suggests this vision is taking shape: investors hit by volatile US trade policies are being prompted to seek alternatives to dollar-based investments.
For instance, six major banks – including Standard Bank and First Abu Dhabi Bank – recently agreed to use China’s Cross-Border Interbank Payment System (CIPS) for international settlements. CIPS is China’s homegrown alternative to SWIFT, and it is emerging as a key infrastructure component in global payments.
Chinese banks report a sharp rise in cross-border renminbi business. The Bank of China – with 543 overseas branches in 64 countries – says 80% of those branches now offer RMB services, and in 2024 its cross-border RMB settlements topped CNY 43 trillion, a 35% jump from the prior year. These are not merely internal figures: foreign borrowers and governments are increasingly taking Chinese loans. A recent case at Brunei’s Muara Port, for instance, saw Bank of China provide dual-currency financing in RMB and Brunei dollars, helping local firms manage exchange-rate risk and complete infrastructure projects. Similarly, a new currency agreement between China and Brazil came online in May 2025: ICBC executed China’s first fully deliverable forward RMB–Brazilian real deal, giving companies direct tools to hedge fluctuations in these currencies.
In global payment systems, the yuan has climbed in usage: by mid-2025, the RMB ranked as the sixth-most-active currency for cross-border payments. More important is the qualitative shift: countries across Asia, Africa, and Latin America are increasingly comfortable settling trade in yuan. Within the BRICS bloc and beyond, ruble, rand, real, and rupee are being used in tandem with the yuan, while ASEAN nations are swapping in baht and ringgit.
Even African institutions like the Afreximbank are facilitating invoices in local currencies. As these examples show, the renminbi is no longer alone – it is becoming a core part of a broader multi-currency settlement network.
These moves are driven in part by a desire for financial sovereignty. Western sanctions on countries like Russia and Iran have exposed vulnerabilities: bankers warn that traditional dollar pipes can be politicised and weaponised as sanctions tools.
China is also coupling its currency strategy with cutting-edge technology. The digital yuan (e-CNY) is central to this effort. An international e-CNY centre in Shanghai will help coordinate overseas use. A pilot called mBridge, led by China’s Digital Currency Research Institute, has shown cross-border CBDC transfers happening in seconds at minimal cost. Tencent’s participation in mBridge in mid-2024 demonstrated how new payment networks could link multiple currencies securely.
At the same time, China is expanding official RMB venues: Shanghai and Guangdong have announced exchanges and bond markets for foreign investors, and the People’s Bank of China has run pilot programs with China’s Hong Kong SAR, Thailand, and others to streamline yuan use in tourism, e-commerce, and finance. Each of these steps deepens the renminbi’s footprint. Analysts point out that while capital controls remain, Beijing’s strategy is to deepen practical usage of the currency first, even before fully liberalizing markets. In this sense, the digital yuan is both a symbol and a tool of the emerging currency order.
The rise of a multipolar currency system has broad implications. For one, it promises to dilute the monopoly power of the US dollar. With more nations able to trade outside the dollar realm, the political leverage of dollar-based sanctions is blunted. For countries like Pakistan, the new order offers potential benefits.
Pakistan already uses mechanisms like the China-Pakistan Currency Swap, and deeper RMB integration could help reduce exchange risks in CPEC projects and trade. More broadly, developing nations can expect larger trade flows settled in local currencies, which makes exports more predictable. It also means access to Chinese and other Asian markets with fewer currency conversion fees.
Mr. Qaiser Nawab, a global peace activist, is a distinguished international expert specializing in the Belt and Road Initiative (BRI), Afghanistan, Central Asia and founder of the Belt and Road Initiative for Sustainable Development (BRISD), a newly established global think-tank headquartered in Islamabad, in conjunction with the one-decade celebration of BRI.
