Xi Jinping wants to make the yuan a global reserve currency

ArmInfo. Chinese President Xi Jinping spoke of the need to make the yuan a global reserve currency in an article for the Communist Party of China's journal, Qiushi.

China needs a "strong currency" that can find "wide application in international trade, investment, and foreign exchange markets, and achieve reserve currency status," he wrote.

He believes the country needs a "strong central bank" capable of effectively managing its monetary resources, globally competitive financial institutions, and international financial centers that can "attract global capital and influence global pricing."

Chinese leaders have long been trying to promote the internationalization of the yuan, but now is the clearest indication yet of what Xi Jinping means when he speaks of the need for a "strong currency" and the financial foundation that must be built to support it, according to the Financial Times.

He initially made these statements in a 2024 address to senior regional officials, but they were not made public until January 31.

The Chinese leader's article was published amid heightened uncertainty in global markets. The weakening dollar, the upcoming change in leadership at the Federal Reserve, and geopolitical and trade tensions have forced global central banks to rethink their reliance on dollar assets.

"China feels that a shift in the global order is more real than ever," notes Kevin Lam, an economist at Pantheon Macroeconomics. He argues that Xi Jinping's increased attention to the yuan reflects "new cracks in the global order."

According to the International Monetary Fund, the yuan's share of global reserves stood at just 1.93% in the third quarter of last year, the sixth-largest among all currencies. The dollar accounted for approximately 57% (compared to 71% in 2000), and the euro for around 20%.  (INTERFAX)