Core Viewpoint - The internationalization of the Renminbi (RMB) faces significant challenges, with its global reserve amount projected to decrease to 246.31 billion USD by the first quarter of 2025, representing only 2.12% of total global allocated foreign reserves [1][2][3]. Summary by Sections Current Status of RMB Internationalization - As of the first quarter of 2025, the RMB ranks sixth among global reserve currencies, with a total reserve of 246.31 billion USD, following the US dollar, euro, pound, yen, and Canadian dollar [2][3]. - The RMB's share in global allocated foreign reserves is significantly lower than that of the leading currencies, indicating a need for improvement in its international status [3]. Challenges to RMB Internationalization - The depth and breadth of China's financial markets are insufficient compared to major reserve currency issuers, limiting foreign investors' willingness to hold RMB assets [4]. - The RMB lacks sufficient influence in international payment and settlement systems, relying heavily on the SWIFT system, while its own CIPS system requires further development [4]. - Policy coordination and institutional guarantees are inadequate, with China's financial market lacking the maturity and transparency found in other major economies [4][6]. Future Strategies for RMB Internationalization - Deepening financial market reforms is essential, including enhancing the transparency and legal framework of RMB financial assets and expanding access for foreign investors [7][9]. - Improving the infrastructure for cross-border RMB usage, such as accelerating the development of the CIPS system and establishing local clearing arrangements with countries along the Belt and Road Initiative [7][9]. - Cultivating a RMB-denominated asset system by encouraging domestic companies to issue RMB-denominated bonds abroad and promoting RMB settlement in commodity trading [9]. - Strengthening international monetary cooperation, particularly with emerging economies, to enhance bilateral currency swap agreements and regional currency coordination [9][10]. - Gradually advancing capital account convertibility while ensuring macro-prudential management to prevent systemic financial risks [10][12]. Conclusion - The internationalization of the RMB is a complex process that requires a proactive approach, including open financial markets, improved infrastructure, and innovative financial products, to establish the RMB as a necessary global currency [12].