China pushes renminbi in trade amid US tariffs

China’s central bank has raised the floor for renminbi (RMB) usage in cross-border trade to 40% from 25%, signaling a renewed push to internationalise its currency as tensions with the US continue. The People’s Bank of China adjusted its Macro Prudential Assessment to encourage banks to facilitate more RMB-denominated trade transactions, people familiar with the move said. While not mandatory, compliance affects regulatory scores tied to future business expansion. The shift comes amid fresh US tariffs of up to 145% on Chinese goods and a tentative 90-day truce in trade talks. With RMB trade settlements at 30% of total goods trade in 2024, Beijing is seeking to further reduce reliance on the US dollar. The yuan has gained 1.57% this year.