China’s alternative to the dollar-denominated financial system experienced record daily volume in August 2026. This increase follows a notable spike last spring, attributed to companies seeking alternatives due to sanctions related to the Iran war, suggesting a potential long-term advantage for Beijing in developing a parallel financial infrastructure.
Despite this growth, the dollar remains dominant. Data from Atlantic Council researchers Jessie Yin and Lize de Kruijf indicates that the U.S. dollar continues to support the majority of global trade and foreign-exchange transactions. Josh Lipsky, chair of international economics at the Atlantic Council, stated, "The top line numbers all remain stable. But look underneath the hood and there’s some worrying signs."
China's attempts to reduce the dollar's influence have not yet resulted in significant changes. The renminbi's share in global central-bank reserves has declined since 2022, even as China has increased its currency distribution to developing nations through central-bank swap lines. However, the number of participants in China’s cross-border interbank payment system has more than doubled since Russia's invasion of Ukraine, which has led to the use of Western financial networks to freeze Russian assets.