Xi Jinping Calls for a ‘Strong Currency’ to Power China’s Financial Rise

Picture Credit: by ABN AMRO

China has reiterated its ambition to elevate the yuan into a “strong currency” capable of playing a central role in global trade, investment, and foreign exchange markets, positioning it as a future global reserve currency. The goal was outlined in excerpts from a speech delivered by President Xi Jinping in 2024 and published online on Saturday by Qiushi, the ruling Communist Party’s leading theoretical journal.

Xi made the remarks while addressing provincial and ministerial officials, framing the development of a strong and credible currency as a key pillar in China’s broader strategy to transform itself into a global financial powerhouse. According to the excerpts, a robust currency is not only a symbol of economic strength but also an essential tool for expanding international influence and financial stability.

The renewed emphasis on the yuan’s global role comes at a time of growing uncertainty in international financial markets. Questions surrounding the long-term stability and dominance of the US dollar have intensified amid geopolitical tensions, inflation concerns, and shifting economic power dynamics. Against this backdrop, China’s push for a stronger yuan reflects a strategic effort to reshape the global financial landscape.

Picture Credit: by The New York Times

Over the past year, the yuan has generally strengthened against the US dollar, supported by China’s economic performance and policy measures. However, international investment banks continue to argue that the currency remains undervalued when measured against its long-term fundamentals, suggesting further room for appreciation if structural reforms and market confidence deepen.

The excerpts published by Qiushi also highlighted what Xi described as the core attributes of a financial powerhouse: a solid economic foundation, world-leading economic and technological strength, and a currency that is widely used, trusted, and credible. Together, these elements underscore Beijing’s long-term vision of aligning financial influence with its growing economic and technological capabilities.

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