Recently, I noticed a fairly noteworthy trend. The determination of the People’s Bank of China to promote the internationalization of the renminbi seems to be even more firm than before.

Recently, the governor of the central bank, Pan Gongsheng, commented that China is gradually promoting the renminbi to play an important role as an international settlement currency. He said the People’s Bank is focused on building a safer, more efficient, and more diversified cross-border payment system. This is not just a matter of monetary policy—it is also a key part of the overall reform and opening-up strategy.

What’s interesting is that Pan Gongsheng also specifically emphasized financial cooperation with countries in the Global South—not only in Asia, but also within the scope of cooperation including economies such as the European Union and Brazil. This shows that the People’s Bank’s level of participation in global financial governance is increasing.

From the exchange-rate perspective, the renminbi’s performance against the US dollar is also consistent with this direction. Against the backdrop of recent geopolitical fluctuations, the renminbi has actually displayed substantial appreciation momentum. Market analysts generally expect the renminbi to continue strengthening over the next five years. The main reason is that China’s economic growth rate remains faster than that of the United States, which provides support for the renminbi’s underlying value.

An institution’s estimate suggests that the renminbi’s “fair value” could be about 25% higher than it is today. This also explains why Xi Jinping reiterated last February the resolve to “make the renminbi widely used in international trade, investment, and the foreign exchange market, and gradually achieve reserve currency status.”

However, the central bank has also been quite cautious in this process. Instead of aggressively pushing up the renminbi, it has been steadily moving forward while taking into account the global macro environment. This restraint, in turn, makes the process of renminbi internationalization seem more credible and sustainable.

Overall, the People’s Bank of China’s commitment to renminbi internationalization has not wavered. They are advancing this goal in a more systematic and comprehensive way. Whether it is upgrading the payment system, expanding international cooperation, or a modest rise in the exchange rate, all of it points to the same direction.