Xi Jinping also emphasized the importance of creating a "powerful central bank" to manage monetary policy, as well as developing financial institutions that can attract international capital and influence global prices.
According to the FT, these statements from China came amid growing uncertainty in global markets. The decline of the dollar, the potential change in leadership at the U.S. Federal Reserve, and existing geopolitical and trade tensions have prompted central banks to reconsider their dependence on dollar assets.
Han Shen Lin, director for China at The Asia Group, noted that Beijing aims for the yuan to become a global currency not to replace the dollar, but to serve as a "strategic counterbalance, limiting U.S. influence amid the fragmentation of the financial order."
