Financial Times: Xi Jinping has called for the renminbi to become a global reserve currency, in some of his clearest comments on his ambitions for China’s currency as Beijing seeks to play a greater role in the international monetary system.
In commentary published on Saturday in Qiushi, the ruling communist party’s flagship ideology journal, China’s president said the country needed to build a “powerful currency” that could be “widely used in international trade, investment and foreign exchange markets, and attain reserve currency status”. China’s leadership has long sought to promote the internationalisation of the renminbi.
But the comments marked Xi’s clearest definition yet of his goal of a “strong currency”, as well as the broader financial foundations Beijing will need to build to support it. These include a “powerful central bank” capable of effective monetary management, globally competitive financial institutions and international financial centres able to “attract global capital and exert influence over global pricing,” Xi wrote.
The comments were originally part of a speech Xi delivered in 2024 to top regional officials, but had not been released publicly until this week. The publication of Xi’s comments comes amid heightened uncertainty in global markets as a weaker US dollar which President Donald Trump last week called a “great” development a change in leadership of the Federal Reserve and geopolitical and trade tensions have prompted central banks to rethink their exposure to dollar assets. “China senses the change of the global order more real than before,” said Kelvin Lam, senior China+ economist at Pantheon Macroeconomics. Xi’s emphasis on the renminbi reflected “recent ruptures in the global order”, he added.
