More countries prefer to borrow RMB instead of US dollars: lower costs, bigger investments

More countries are converting their USD-denominated loans into RMB debt.

Borrowers of Chinese renminbi pay less than half in interest charges, compared to US dollar loans.

China's massive Foreign Direct Investments across Asia, Africa, and even Europe are also important drivers of de-dollarization, as large new pools of offshore RMB are available for borrowing and loan repayments.

Closing scene, Bank of Hong Kong, HK

Resources and links:

Weaponisation of reserves likely to spur de-dollarization: Survey of central bank executives
https://www.centralbanking.com/central-banks/reserves/7972966/weaponisation-of-reserves-likely-to-spur-de-dollarisation

Why seizing Russia's assets would be a gift to Beijing
https://responsiblestatecraft.org/seizing-russian-assets/

Beijing role in Africa's green shift draws praise
https://global.chinadaily.com.cn/a/202512/25/WS694c8db5a310d6866eb3059c.html

Kenya turns to China for $1.5 billion highway expansion
https://www.reuters.com/world/africa/kenya-turns-china-15-billion-highway-expansion-2025-11-28/

Ethiopia secures multiple deals with China amounting to $1.7 billion
https://africa.businessinsider.com/local/markets/ethiopia-secures-multiple-deals-with-china-amounting-to-dollar17-billion/txk1w2j

IMF Issues ‘Currency Risk’ Warning As Countries Swap US Dollar Loans Into Yuan: Report
https://dailyhodl.com/2025/11/12/imf-issues-currency-risk-warning-as-countries-swap-us-dollar-loans-into-yuan-report/

China isn't dumping dollars. They're dumping banks, and setting up a new financial system.
https://www.youtube.com/watch?v=DnzuR-kog-w&feature=youtu.be

IMF Flags Currency Risks as Nations Swap Dollar Loans Into Yuan
https://www.bloomberg.com/news/articles/2025-11-11/imf-flags-currency-risks-as-nations-swap-dollar-loans-into-yuan

How Hungary became China’s new factory hub in the heart of Europe
https://www.scmp.com/economy/china-economy/article/3313686/how-hungary-became-chinas-new-factory-hub-heart-europe

Sri Lanka resumes key highway project with $500 million new Chinese funding
https://www.reuters.com/world/china/sri-lanka-resumes-key-highway-project-with-500-million-new-chinese-funding-2025-09-17/

Kenya receives US$430m in agriculture investment pledges from China
https://www.ntu.edu.sg/cas/news-events/news/details/kenya-receives-us-430m-in-agriculture-investment-pledges-from-china

China - China/US 10Y Bond Yield Spread vs. USD/CNH

https://en.macromicro.me/charts/18341/cn-10-year-yield-spread-between-cn-and-us--vs-cnh

Trading Economics, global government bond yields
https://tradingeconomics.com/bonds