China’s President Xi Jinping published an article in the Communist Party journal Qiushi calling for the yuan to become a global reserve currency. Xi Jinping stressed that China needs a “powerful currency” capable of wide use in international trade, investment, currency markets, and reserve holdings. These remarks were originally made in 2024 when he addressed senior regional officials, but were only published on January 31, 2026.

Xi Jinping outlined the foundations needed to strengthen the yuan’s position: “a powerful central bank” able to manage monetary policy effectively; globally competitive financial institutions; and international financial centers that can “attract world capital and influence global price formation.” This comprehensive program reflects China’s desire to reshape the global financial system in line with its interests.

The timing of the article is notable: it appeared amid great uncertainty in global markets. Dollar weakness, the impending replacement of the Fed chairman, and geopolitical and trade tensions are prompting central banks to reassess their dependence on dollar assets. Kevin Lamm of Pantheon Macroeconomics says that Xi Jinping’s special focus on the yuan reflects “new breaches in the world order” and suggests that China feels that a change in the global order is more realistic than ever.

However, China’s ambitions encounter hard financial realities. IMF data show that the yuan’s share of global reserves was only 1.93% by Q3 2025, making it the sixth most‑held currency among reserve assets. The US dollar still dominates with about a 57% share, though down from a historic 71% in 2000. The euro accounts for roughly 20%. Moving from its current position to full reserve‑currency status will require not only ambition but fundamental reforms in capital controls and greater openness of China’s financial markets.