Xi Jinping’s Bold Push: Yuan Should Become Global Reserve Currency

DID Press: Chinese President, Xi Jinping, has for the first time explicitly said China’s goal is to make yuan one of the world’s leading reserve currencies. This statement, published in the Communist Party’s ideological journal, Qiushi, is considered the clearest declaration of China’s financial ambitions in recent years.

According to reports, Xi emphasized that China must build “a powerful currency,” one that is widely used in international trade, investment, foreign exchange markets, and as part of central bank reserves globally.

These remarks, extracted from a 2024 speech and now published in 2026, signify a shift in China’s approach from gradual hints to a clear declaration of intent.

In recent years, China has made extensive efforts to internationalize the yuan, from increasing its use in trade settlements to expanding currency swap agreements with various countries. However, yuan still constitutes only about 1.93% of global official reserves, a relatively small share.

Analysts believe that the publication of these remarks at a time when U.S. dollar is weakening and concerns about global financial risks are rising signals China’s intent to seize the geoeconomic moment. Beijing hopes that strengthening yuan’s role will reduce its reliance on the dollar and elevate its position in the international financial system.

However, experts caution that structural limitations, such as capital controls, low transparency in Chinese financial markets, and political considerations, continue to hinder the rapid transformation of the yuan into a global reserve currency.