China’s Xi Calls for Elevating Yuan to Global Reserve Currency Status

Chinese President Xi Jinping has called for intensified efforts to elevate the yuan to the status of a global reserve currency, framing the move as part of China’s long-term strategy to build what he described as a “financial superpower.”

In remarks published Sunday in Qiushi, the ruling Communist Party’s official journal, Xi said strengthening the international standing of the yuan is essential to China’s broader ambition of reshaping the global financial order. The push, he noted, rests on solid economic and technological foundations rather than short-term financial maneuvers.

The comments come at a time of growing uncertainty in global financial markets and rising questions over the durability of the US dollar’s dominance, as volatile fiscal and monetary policies in Washington unsettle investors worldwide.

Xi outlined what he described as the core pillars of a global financial power, arguing that the concept extends beyond the size of banking assets or foreign exchange reserves, areas where China already ranks among the world’s leaders. Instead, he emphasized the importance of a widely trusted national currency, a central bank capable of executing effective monetary policy, and financial institutions with the capacity to influence global pricing mechanisms and attract foreign capital.

“A strong currency with international credibility is fundamental,” Xi said, according to excerpts of the speech, adding that China must continue improving its financial governance and policy coordination to support the yuan’s global role.

Despite Beijing’s ambitions, analysts note that significant hurdles remain. Economists at Goldman Sachs estimate that the yuan is still undervalued by as much as 25% against the US dollar. While the Chinese currency has shown relative stability amid trade-related volatility, authorities have signaled a preference for gradual strengthening rather than aggressive devaluation tactics seen in previous decades.

That cautious approach, analysts say, reflects Beijing’s desire to cultivate long-term confidence among global investors, even as it carefully manages capital flows and maintains tight oversight of its financial system.

China’s renewed emphasis on the yuan also coincides with growing global unease over what some market participants describe as “yo-yo” swings in the dollar, driven by shifting US fiscal priorities and interest-rate uncertainty.

As geopolitical tensions reshape trade and capital flows, Xi’s remarks underscore Beijing’s determination to position the yuan as a credible alternative in a global monetary system that has long been anchored by the US dollar.