Xi Jinping emphasized the need for a "powerful central bank" that could control monetary policy, as well as the creation of competitive financial institutions capable of attracting international capital and influencing global prices.
As noted by the FT, the Chinese leader's words came against the backdrop of growing uncertainty in global financial markets. The weakening of the dollar's position, possible changes in the leadership of the U.S. Federal Reserve, and geopolitical tensions are prompting central banks to reassess their dependence on dollar assets.
Han Shen Lin, director for China at The Asia Group, noted that Beijing aims to make the yuan a global currency not with the goal of replacing the dollar, but to create a "strategic counterbalance that limits U.S. influence amid a split in the financial system."
