Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327974 
Year of Publication: 
2025
Citation: 
[Journal:] DIW Weekly Report [ISSN:] 2568-7697 [Volume:] 15 [Issue:] 31/33 [Year:] 2025 [Pages:] 191-198
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Geopolitical frictions and high levels of uncertainty in US policy are driving countries to reduce dependence on the US dollar and implement new policies to promote their own currencies for settling cross-border trade. This Weekly Report analyzes the reactions of firms to such measures, focusing on China's efforts to promote the renminbi globally. Leveraging detailed French customs data, the findings show that China's renminbi push spurred rapid growth in the currency's use in firm-level exports to China, driven by large and experienced exporters in consumer goods sectors. Crucially, renminbi adoption remained confined to China, displacing neither the US dollar nor the euro as the preferred invoicing currencies in other markets. These results highlight the limits to currency promotion efforts. Any transition to a multi-polar currency system is therefore likely to be gradual, with sharp disparities across firms and industries.
Subjects: 
International trade
Invoicing currency
Geoeconomics
JEL: 
F14
F23
F33
Persistent Identifier of the first edition: 
Document Type: 
Article

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