The use of the renminbi (RMB) as a trading currency and in international payments has increased recently with more and more countries initiating RMB settlement business.
By transactional value, RMB is now one of the six most-used currencies in the world with its shares increasing 1.79% according to the World Bank Interbank Financial Telecommunications Association (SWIFT). Its use as trade settlement currency is expected grow more in the coming years.
During the China and US trade war, China was buying large quantities of gold to hedge against the value of its dollar holdings. The country was also testing its digital currency the e-RMB which also posed a challenge to the dollar.
