Source: Kazakh International News Agency. In recent years, China has continuously promoted the internationalization of the RMB on a global scale, achieving significant breakthroughs, especially in cross-border settlement systems and the application of digital currencies. This trend not only reshapes the structure of the international financial system, but also brings new opportunities and challenges to Central Asian countries, including Kazakhstan.

The Rise of the RMB in the Global Trade System

According to the latest survey report released by the Bank for International Settlements (BIS), the share of the RMB in global foreign exchange transactions has risen to 8.5%, with an average daily transaction volume of about $817 billion, ranking fifth globally, following the US dollar, euro, Japanese yen, and British pound. In contrast, the share of the British pound has dropped from 12.9% to 10.2%, indicating that the scope of international use of the RMB is rapidly expanding.

The "2025 Report on the Internationalization of the RMB" points out that geopolitical uncertainties, increasing trade barriers, and fluctuations in US interest rates have prompted many emerging market countries to gradually reduce their reliance on the US dollar, using their own currencies and regional currencies in international transactions. Southeast Asia, Central Asia, and Africa have become one of the regions where the use of the RMB is growing the fastest.

Data from the International Monetary Fund (IMF) show that the share of the US dollar in the foreign exchange reserves of economies in the Global South has dropped to 58%, the lowest level in 20 years, showing that the trend of "de-dollarization" is accelerating.

Breakthroughs of RMB Cross-Border Settlement in Central Asia

With the continuous improvement of the People's Bank of China's cross-border payment system (CIPS), as of the end of 2024, the CIPS system has covered 189 countries and regions, with over 1,700 domestic and foreign participants. The system processes 17.5 trillion yuan in cross-border RMB business annually, an increase of 43% year-on-year.

This infrastructure improvement has created conditions for Kazakhstani companies to directly settle transactions with Chinese partners in RMB.

In 2022, the People's Bank of China signed a cooperation memorandum with the National Bank of Kazakhstan to establish a RMB clearing arrangement in Kazakhstan, authorizing Industrial and Commercial Bank of China (Almaty) as the RMB clearing bank in Kazakhstan. This made Kazakhstan the first country in Central Asia to officially connect to the RMB clearing network.

ICBC Almaty and the branch of China Construction Bank in Astana jointly built a financial channel for cross-border RMB business between China and Kazakhstan, providing safe and efficient clearing services for Sino-Kazakh trade and investment.

By 2025, ICBC Almaty has not only become the main market maker for RMB to Tenge, but also directly entered the inter-bank foreign exchange and bond markets in China, significantly enhancing the depth of Kazakhstani financial institutions' participation in the RMB market.

New Practices in Sino-Kazakh Trade: RMB Settlement on E-commerce Platforms

Kazakh e-commerce platform ALEM MARKET recently completed its first cross-border transaction settled in RMB, marking the practical implementation of the RMB in the digital trade sector of Central Asia. This transaction was completed through the CIPS system, taking only 10 minutes, which is dozens of times more efficient than the traditional USD settlement model.

This achievement would not have been possible without the cooperation of ICBC Almaty and the branch of China Construction Bank in Astana. Both institutions, as direct participants in the CIPS system, provided clearing channels and liquidity support for the transaction. This marks that the RMB cross-border payment has expanded from traditional trade to emerging fields such as e-commerce, fintech, and services.

Macro Background of RMB Internationalization and Kazakhstan's Strategic Considerations

The internationalization of the RMB is not only China's financial strategy, but also an important support for the "Belt and Road" initiative. With the deepening of Sino-Kazakh cooperation in energy, transportation, and finance, the use of the RMB will help reduce exchange rate risks, simplify settlement processes, and strengthen the financial security of regional supply chains.

The RMB settlement mechanism brings three positive impacts to Kazakhstan:

• Trade facilitation – enterprises can directly settle with Chinese partners in RMB, reducing the cost of USD conversion;

• Financial diversification – direct quotation of local currency and RMB helps enhance the activity of the tenge in the regional foreign exchange market;

• Investment attractiveness – the expansion of RMB loans and bond businesses promotes the integration of Kazakhstan's financial market with the Asian capital market.

However, the internationalization of the RMB also means the adjustment of regional currency dependency structures. How to maintain the stability of the local currency and financial sovereignty while expanding the use of the RMB will be an important issue in Kazakhstan's future financial strategy.

Conclusion

As the position of the RMB in global trade, investment, and payment systems continues to rise, Central Asia is gradually becoming an important node in this internationalization process.

For Kazakhstan, the establishment of the RMB clearing system is not only a new milestone in financial cooperation, but also symbolizes Kazakhstan's "bridge role" in the reshaping of the global financial landscape – a financial corridor connecting Eurasia is forming steadily.

Original article: https://www.toutiao.com/article/7566573191477445135/

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