Renminbi and belt and road initiative: analyzing a decade of currency internationalization (2013-2023)

Resumo

Over the course of a decade, the Belt and Road Initiative (BRI) has expanded China's regionalism efforts, fostering enhanced connectivity and cooperation. Launched in 2013, the BRI seeks to improve infrastructure development, trade, and investment across Asia, Africa, Europe, and Latin America. A fundamental pillar of this initiative is the Renminbi (RMB) internationalization, which is considered an essential part of China's strategy for the prospect of global monetary ascension. This article analyzes the significant advancements in the coordinated development of Renminbi (RMB) internationalization and the Belt and Road Initiative (BRI) from 2013 to 2023. The findings demonstrate that RMB internationalization has led to growing economic interdependence, strengthened trade relations, and attracted foreign direct investment between China and the participating countries. Moreover, with the advance of RMB internationalization, China has facilitated financial transactions in its currency in favor of BRI countries, translating into a geostrategic region to reduce dependence on the US dollar and, alternatively, increase its global monetary influence.