Major State lenders launch cross-border solutions amid currency diversification

China's major State-owned commercial banks recently launched new cross-border renminbi solutions, signaling a stronger push to internationalize the currency as global investors and policymakers increasingly look beyond a single-currency-dominated system amid mounting geopolitical uncertainty.

Industrial and Commercial Bank of China unveiled its comprehensive cross-border renminbi financial solutions on Friday. The move implements key directives from the outline of the 15th Five-Year Plan (2026-30) to advance the internationalization of the renminbi — also known as the yuan — and expand its use in international trade, investment and financing, while fully supporting efforts to build China into a strong trading nation and further expand high-standard opening-up.

READ MORE: Executive: Yuan's role on the rise

According to its plan, ICBC has introduced 10 major service systems, including cross-border trade settlement, financial market investment and wealth management, market risk management, and global cash management.

It has also established a special financing quota of 1 trillion yuan ($145.3 billion) to connect Chinese and overseas markets, providing cross-border RMB financing support to eligible enterprises and institutions at home and abroad. Priority will be given to areas such as new quality productive forces, digital trade and the global expansion of Chinese enterprises.

Liu Jun, president of ICBC, said the current volatile global economic and political landscape has made it increasingly clear that building a diversified and balanced international financial system is an urgent priority. Liu said trust in a monetary system dominated by a single sovereign currency is eroding, prompting a growing number of investors worldwide to adopt more diversified currency allocations.

"For a major economy like China, which accounts for about 15 percent of global GDP, it is both reasonable and necessary — whether from the perspective of efficiency or security — for its currency to hold a status commensurate with its economic position," Liu said, adding, "A growing market consensus is emerging that the internationalization of the renminbi has entered an important historical window."

In recent years, cross-border trade and investment activities have become increasingly active, and the use of the yuan in cross-border transactions has continued to rise. In 2025, RMB settlements accounted for more than half of China's total cross-border receipts and payments, said Li Bin, deputy head of the State Administration of Foreign Exchange.

Tao Ling, deputy governor of the People's Bank of China — the nation's central bank — said that under a supportive policy environment, more and more enterprises are recognizing the tangible benefits of using the RMB in cross-border transactions. These include reduced financial costs, better hedging against exchange rate risks and improved resilience to external shocks.

The RMB has become an important payment and settlement tool for Chinese companies expanding overseas. Last year, the value of cross-border RMB receipts and payments handled by Chinese commercial lenders on behalf of clients reached 71 trillion yuan, up 10 percent year-on-year, with RMB settlement in goods trade accounting for nearly one-third, Tao said.

Last week, the Shanghai branch of Bank of China unveiled version 2.0 of its financial services plan to support the cross-border use of the yuan by State-owned enterprises, expanding coverage to a wider range of scenarios such as cross-border account management, diversified financing and digital system integration, and offering more comprehensive support for the global expansion of these enterprises.

The bank has also signed cross-border renminbi financial service agreements with more than 10 State-owned enterprises, under which it will provide a full suite of services including cross-border settlements, financing, cash pooling and bond issuances.

ALSO READ: PBOC to support cross-border RMB interbank financing business

Meanwhile, ICBC on Friday signed a memorandum of understanding on renminbi cooperation with South Africa's Standard Bank. The two sides have worked together to expand the use of the Chinese currency across Africa and promote its adoption along the China-Africa corridor. The MOU reflects "a future in which financial connectivity between China and Africa becomes more seamless, more digital and more anchored in the renminbi", said Sim Tshabalala, CEO of Standard Bank Group, the continent's largest bank by assets.

Standard Bank views its deeper participation in RMB internationalization as an opportunity to better serve Chinese and African companies and individuals by making payments cheaper and simpler, Tshabalala said.

Tao of the PBOC said the RMB offers a safe and stable currency option for both Africa and the broader global economy. As China-Africa economic and trade ties continue to strengthen and cooperation along industrial chains deepens, she said that the use of the RMB across the continent has broad prospects.

Contact the writers at jiangxueqing@chinadaily.com.cn