When China first unveiled its plans to connect more than 65 countries along a modern Silk Road in 2013, the project was met with great fanfare. The Belt and Road Inititiave (BRI), as it was later renamed, was initially hailed as "the most ambitious economic and diplomatic program since the founding of the People's Republic". Beyond the pledge that it would help to turn China into a high-income economic powerhouse, Chinese officials also touted the BRI as a vehicle for transforming the country's currency into a global one.

Five years on, the renminbi hasn't made much headway as an internationally-recognised unit of account, medium of exchange or store of value — the three functions a global currency must fulfil. In fact, the majority of BRI projects are not even funded this way. Like most global transactions, the dollar dominates, putting a natural cap on just how revolutionary the BRI can be.

In recent years, Chinese officials have made a concerted effort to promote the renminbi's international use. Since 2009, China has signed more than 30 bilateral currency swap agreements with a wide range of countries from Argentina to Nigeria. This year, Chinese regulators have loosened rules for foreign commercial banks to conduct business on the mainland. And as recently as last week, they also extended more licenses to Western banks to underwrite renminbi-denominated bond sales by foreign companies.