7 months ago
Xi Advocates Yuan as Global Reserve Currency
Chinese President Xi Jinping wants the yuan, China's currency, to be stronger and used more around the world.
He thinks this will help China's economy and make the yuan as important as the US dollar.
China has been using the yuan more in trade with other countries and has agreements with about 50 countries to make this easier.
Xi also wants China to have a strong financial system with a powerful central bank and good financial rules.
Some people think the yuan is not yet as strong as it could be, but China is working on making it more important in global trade and finance.
Xi's speech was published in Qiushi, the ruling Communist Party’s leading theoretical journal, and was aimed at provincial- and ministerial-level officials.
Chinese President Xi Jinping advocates for a strong yuan to challenge the US dollar's dominance.
China settled nearly one-third of its USD 6.2 trillion foreign trade in local currency last year.
China is promoting the Cross-Border Interbank Payment System (CIPS) as an alternative to SWIFT.
China has established currency swap agreements with about 50 countries to facilitate trade in local currencies.
Xi emphasizes the need for a strong economic foundation, including a robust financial system and a high-caliber team of financial talent.
- Who
- Chinese President Xi Jinping
- What
- Advocating for a strong yuan to challenge the US dollar's dominance
- Where
- China
- When
- Speech delivered in 2024, published over the weekend in Qiushi
- Why
- To reduce reliance on the US dollar and elevate the yuan to the status of an international reserve
Key facts
- Currency
- Yuan (RMB)
- Global Reserve Status
- Goal
- International Trade Settlement
- Nearly one-third of China's USD 6.2 trillion foreign trade
- CIPS
- Cross-Border Interbank Payment System
- Currency Swap Agreements
- About 50 countries
- Yuan's Strength
- Generally strengthened against the dollar in the past year
- Goldman Sachs Estimate
- Yuan trading about 25% below its fair value against the dollar
- BRICS
- 10-member bloc pushing for a common currency and alternative payment system
- Speech Publication
- Qiushi, the ruling Communist Party’s leading theoretical journal
- Speech Audience
- Provincial- and ministerial-level officials
Quotes
Xi Jinping
President of the People's Republic of China
“China's financial development with Chinese characteristics not only follows the path of the development of modern finance, but also has distinctive features that suit China's national conditions, which is different from the Western financial development model.”
telegraphindia.com
“The country should also have a series of key core financial elements, such as a strong currency and central bank, robust financial institutions and international financial centres, solid financial supervision, and a high-calibre team of financial talent.”
telegraphindia.com
