The head of the People's Republic of China emphasized the need to create a "powerful currency" that can be widely used in international trade, as well as in financial and investment markets.
Chinese authorities have long sought to internationalize the yuan, highlighting their ambitious plans on the global financial stage.
Xi Jinping also noted that to achieve this goal, the country needs a "strong central bank" that can effectively manage monetary policy, as well as competitive financial institutions capable of attracting foreign investments and influencing global prices.
According to FT, such statements come against the backdrop of growing uncertainty in international markets. The decline in the dollar's value, potential changes in the leadership of the U.S. Federal Reserve, and increasing geopolitical and trade tensions are prompting central banks to reassess their positions regarding dollar assets.
According to Han Shen Ling, the director for China at The Asia Group, Beijing aims for the yuan to become a global currency not to replace the dollar, but to create a strategic counterbalance that would limit U.S. influence amid the rift in the financial system.
