Xi Jinping pushes the yuan to the forefront of the global financial system

Chinese President Xi Jinping has called for transforming the yuan (renminbi) into a global reserve currency capable of competing with the dollar, as part of China’s efforts to reshape the international monetary system and reduce American dominance over it. He stressed that achieving this goal requires building a strong central bank, globally competitive financial institutions, and financial centers capable of attracting capital and influencing international pricing.

This call comes amid a growing trend among BRICS countries to reduce reliance on the dollar, especially after it was used as a tool of pressure through Western sanctions on Russia. Although the dollar continues to dominate most global trade, large regions—particularly in trade between China and Russia—have seen an expansion in the use of national currencies.

Despite notable progress in the use of the yuan in financing international trade—where it has become the second most used currency after the dollar—its share in global reserves remains limited. While analysts point out that its transformation into a major reserve currency will be gradual, Xi’s recent statements reflect a clear political determination to push the yuan into a more influential position within the global financial system.