Is China building an alternative monetary system for the RMB?

China is skipping the dollar playbook in its push to make the renminbi an international currency.

China is taking a different strategy in taking the renminbi global: it’s forming its own alternative monetary system rather than just spending its currency, according to Natixis Asia Research.

The country is building the payment, custody and trading infrastructure to carry the RMB outside the dollar system.

“The result looks less like the internationalization of a currency but more like the construction of an alternative monetary system for the renminbi’s cross-border use: one in which Chinese banks supply, Chinese corporates absorb, and Chinese infrastructure clears,” Natixis Asia Research said in the report, “Is China building an alternative monetary system?”

The standard way to make an international currency is through the capital account, where the issuer opens its international markets and buys more than they sell, the report said.

However, China’s starting conditions rule this strategy out as the country is a net creditor due to its persistent and large account surplus, said Natixis Asia Research.

Its currency is also not fully convertible, so it cannot supply renminbi (RMB) to the world by either current, or an open capital account, Natixis said.

Instead, China is pushing the RMB abroad through trade settlement and cross-border funding extended by its own banks.

This strategy bears little resemblance to how the dollar, pound, and euro became international currencies, Natixis said.

In an interview with Asian Banking & Finance, HSBC’s global head of RMB internationalisation set expectations for RMB to play a bigger role in the global financial system.

“We expect the investment flow between China and the rest of the world to continue. That's why the Chinese currency will definitely be one of the good options for cross-border settlements, including investments,” Vina Cheung said in a March 2026 interview.

An earlier report by Natixis noted that Chinese banks are doubling down on offshore investment as onshore rates remain low, with overseas assets increasingly denominated in RMB.