• Shanxuan Yu Euclid University




Islamic Finance, Multilateral Currency Swaps, Digital Renminbi, Data-Driven Analysis


China was once among the world's poorest countries, but during the past forty years, it has turned into an economic powerhouse. Bilateral exchange lines are one of PBC's patented methods of promoting RMB internationalization. Swap lines were initially created to assist with RMB settlement in international trade due to the limited RMB liquidity overseas. Prior to eventually expanding to other rising economies, the first geographic reach concentrated on Asian neighbors. Swap lines can boost a loan's usage and reduce the apparent risk distribution of a loan in a rising currency. Swap lines have an impact that extends beyond their core usage in order to create a larger safety net. The PBC has established bilateral swap lines in addition to offshore clearing institutions in 25 markets to facilitate RMB payments. The e-CNY was created by the PBC for four main reasons. The general public's accessibility to digital money is the initial objective of the e-CNY. Additionally, it aspires to promote efficient, secure, and equitable retail payment systems. Third, the e-CNY will improve the efficiency of international payments. The fourth is that financial inclusion should be benefited. The empirical analysis underlined the crucial hopes that the e-CNY may promote bilateral currency exchanges between Islamic nations and China and may serve as a big economic boost for those nations.


Alnsour, I. R. (2019). Foreign currency exchange risks management in Jordanian Islamic Banks. Journal of Islamic Banking and Finance, 7(2), 29-38.

Brown, B., & Simonnot, P. (2020). Europe's Century of Crises Under Dollar Hegemony: A Dialogue on the Global Tyranny of Unsound Money. Berlin: Springer Nature.

Chey, H. K., Kim, G. Y., & Lee, D. H. (2019). Which foreign states support the global use of the Chinese renminbi? The international political economy of currency internationalisation. The World Economy, 2403-2426.

Cui, Y., Liu, L., & Peng, K. (2022). International competitiveness and currency internationalization: an application to RMB internationalization. Journal of the Asia Pacific Economy, 1-24.

Destais, C. (2016). Central bank currency swaps and the international monetary system. Emerging Markets Finance and Trade, 52(10), 2253-2266.

Fang, Z., & Zhu, J. (2019). How unionpay quick pass is beating alipay and WeChat pay in China. The PayTech Book: the Payment Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries, 155-157.

Fantacci, L., & Gobbi, L. (2021). Stablecoins, central bank digital currencies and US dollar hegemony: The geopolitical stake of innovations in money and payments. Accounting, Economics, and Law: A Convivium.

Fung, H. G., & Yau, J. (2012). Chinese offshore RMB currency and bond markets: The role of Hong Kong. China & World Economy, 20(3), 107-122.

Gholami, R., & Abdul-Rahman, A. (2022). Bank Reactions to COVID-19 Pandemic and Currency Crisis: Empirical Evidence from Iran. International Journal of Islamic Economics and Finance (IJIEF), 5(2), 201-224.

Hao, K., & Han, L. (2022). The impact of China's currency swap lines on bilateral trade. International Review of Economics & Finance, 81, 173-183.

Hasan, M. M., Yajuan, L., & Khan, S. (2022). Promoting China’s inclusive finance through digital financial services. Global Business Review, 23(4), 984-1006.

Kamel, M., & Wang, H. (2019). Petro-RMB? The oil trade and the internationalization of the renminbi. International Affairs, 95(5), 1131-1148.

Katterbauer, K., Syed, H., Genc, S., & Cleenewerck, L. (2023). Al Driven Islamic Buy Now Pay Later (BNPL) – A Legal Analysis. Journal of Management and Islamic Finance, 3(1), 1-19.

Lai, J. T., Yan, I. K., Yi, X., & Zhang, H. (2020). Digital financial inclusion and consumption smoothing in China. China & World Economy, 28(1), 64-93.

Li, J., Wu, Y., & Xiao, J. J. (2020). The impact of digital finance on household consumption: Evidence from China. Economic Modelling, 86, 317-326.

Liang, Y. (2020). RMB internationalization and financing belt-road initiative: An MMT perspective. The Chinese Economy, 53(4), 317-328.

Lin, Z., Zhan, W., & Cheung, Y. W. (2016). China's Bilateral Currency Swap Lines. China & World Economy, 24(6), 19-42.

Liu, Y., Chang, X., Wang, W., & Zhao, M. (2021). The Impact of the COVID-19 Pandemic on Consumption: Evidence from Weekly UnionPay Card Transaction Data in Shanghai. Frontiers of Economics in China, 744-778.

Lu, C., Teng, Z., Gao, Y., Wu, R., Hossain, M. A., & Fang, Y. (2022). Analysis of early warning of RMB exchange rate fluctuation and value at risk measurement based on deep learning. Computational Economics, 59(4), 1501-1524.

Muawanah, E., & Imronudin, I. (2021). Analysis of The Effect Of Capital Adequacy Ratio, Non Performing Financing, and Financing To Deposit Ratio On Profitability: A Case Study On Islamic Commercial Banks In Indonesia. Journal of Management and Islamic Finance, 1(1), 32-47.

Nam, S., Bi, W., & Kim, D. (2022). The SDR and influences on the currency swap agreements for RMB. Applied Economics Letters, 29(16), 1489-1492.

Wu, G., Yang, J., & Hu, Q. (2022). Research on factors affecting people’s intention to use digital currency: Empirical evidence from China. Frontiers in Psychology, 13, 928735.

Yelery, A. (2016). China’s Bilateral Currency Swap Agreements: Recent Trends. China Report, 52(2), 138-150.