China’s leader called for the yuan to become a global reserve currency in effort to play a larger role in international financial systems. Xi Jinping’s comments, published in the Chinese Communist Party’s ideology journal, marked the most concrete definition yet of his goal of building a “strong currency” that can counter the dollar’s dominance, notes FT. The yuan remains a small slice of international reserves. Still, analysts say capital account liberalization is critical to achieving Beijing’s goal. The US and other trading partners have also urged Beijing to let the yuan rise; the currency’s depreciation has made China’s exports cheaper and contributed to a record trade surplus.
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what would China have to do realistically if they wanted to achieve this goal?
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China’s leader called for the yuan to become a global reserve currency in effort to play a larger role in international financial systems. Xi Jinping’s comments, published in the Chinese Communist Party’s ideology journal, marked the most concrete definition yet of his goal of building a “strong currency” that can counter the dollar’s dominance, notes FT. The yuan remains a small slice of international reserves. Still, analysts say capital account liberalization is critical to achieving Beijing’s goal. The US and other trading partners have also urged Beijing to let the yuan rise; the currency’s depreciation has made China’s exports cheaper and contributed to a record trade surplus.
what would China have to do realistically if they wanted to achieve this goal?