China wants to make yuan a global reserve currency: Xi Jinping

International Desk
Chinese President Xi Jinping has said Beijing wants to establish the Chinese yuan as one of the world’s major reserve currencies, a move that will strengthen China’s role in the global financial system, the Financial Times reported.

China’s leadership has long sought to expand the international use of the yuan, but in recent speeches, Xi Jinping has made it clear for the first time that he wants to build a strong currency and the necessary financial framework behind it, which will make China more influential in the global economy.

In an article published in the party’s magazine “Qiushi,” Xi said it was necessary to build a strong currency that is widely used in international trade, investment and foreign exchange markets, and that could become a reserve currency in the future.

He also noted that to achieve this goal, China’s central bank must be further strengthened, competitive financial institutions must be built, and a financial center of international standards must be established.

Analysts say the move is part of Beijing’s long-term strategy to exert influence over the global economy, especially as the US dollar’s influence weakens and the leadership change at the US Federal Reserve prompts many countries to reassess their currency risks and dollar reliance.

However, experts say that political will alone is not enough. It is also crucial to make it easier for foreign investors to enter China’s financial markets, increase transparency, and create an environment of trust.

Xi Jinping’s announcement could send a big message to global financial markets and signal a potential shift in the global monetary system amid geopolitical tensions and economic competition.

Earlier, US President Donald Trump welcomed the dollar’s decline, saying it would benefit US businesses and exports. He also claimed that he could control the dollar’s exchange rate if he wanted to, but he did not see the need for it at the moment.

At the same time, Trump criticized past attempts by China and Japan to devalue their currencies, saying these actions create unfair competition for American products.