News Summary

• For many developing countries, renminbi-denominated loans offer a credible, increasingly accessible, and cost-effective alternative to borrowing in dollars.
• Now that the stability and predictability of US economic policies and institutions are in question, the Chinese currency is becoming more attractive.
• According to UN Trade and Development, developing countries face an annual shortfall of $4 trillion in achieving the Sustainable Development Goals.
• For much of the postwar era, development finance has been predominantly denominated in US dollars, leaving them exposed to changes in borrowing costs and debt burdens.