Xi Jinping emphasized the importance of having a "strong central bank" to manage monetary policy, as well as the need to create competitive financial institutions that can attract international capital and influence global prices.
The FT newspaper points out that the words of the Chinese leadership came against the backdrop of instability in global markets. The decline of the dollar, the possible change in leadership of the U.S. Federal Reserve, as well as geopolitical and trade tensions have prompted central banks to reassess their dependence on dollar assets.
Han Shen Lin, director for China at The Asia Group, noted that Beijing aims to make the yuan a global currency not with the goal of displacing the dollar, but to create a "strategic counterbalance" that would limit U.S. influence amid the fragmentation of the financial order.
