In his opinion, the country needs to create a "strong currency" that can be effectively used in international trade, as well as in investment and currency markets.
It should be noted that the Chinese authorities have long been striving for the internationalization of the yuan.
Xi Jinping emphasized the importance of having a "powerful central bank" to manage monetary policy and competitive financial institutions capable of attracting international capital and influencing the formation of global prices.
The Financial Times also reports that these statements were made against the backdrop of growing uncertainty in the global financial markets. The weakening of the dollar, potential changes in the leadership of the U.S. Federal Reserve, and geopolitical tensions are prompting central banks to reassess their commitments to dollar assets.
Han Shen Lin, the director for China at The Asia Group, noted that Beijing's aim to transform the yuan into a global currency is not to replace the dollar, but rather to create a strategic counterbalance to the influence of the United States amid current financial instability.
