China’s leader called for the yuan to become a global reserve currency, part of Beijing’s efforts to play a larger role in international financial systems.
Xi Jinping’s comments, published in the Chinese Communist Party’s ideology journal, marked the most concrete definition yet of his goal of building a “strong currency” that can counter the dollar’s dominance, at a time when central banks are rethinking their exposure to greenback-based assets.
The yuan remains a small slice of international reserves, though, and analysts say capital account liberalization is critical to achieving Beijing’s goal.
The US and other trading partners have also urged Beijing to let the yuan rise; the currency’s depreciation has made China’s exports cheaper and contributed to a record trade surplus.
