President of China, Xi Calls for Yuan to Replace Dollar as Global Reserve

Chinese President Xi Jinping has made one of his clearest statements yet on elevating the Chinese yuan (renminbi) to global reserve currency status, as detailed in a Financial Times report published on February 1, 2026.

In excerpts from a 2024 speech republished in the Communist Party’s ideological journal Qiushi, Xi called for building a “powerful currency” that is widely used in international trade, investment, and foreign exchange markets, ultimately attaining reserve currency status.

This ambition reflects Beijing’s long-standing push for the yuan’s internationalization, positioning it as a strategic counterweight to the US dollar’s dominance in the global financial system. While not explicitly demanding an immediate replacement of the dollar, Xi’s remarks underscore China’s intent to reduce reliance on the greenback amid geopolitical tensions and efforts to reshape the international monetary order.

The push comes at a time when the dollar still holds overwhelming sway, accounting for around 58% of global reserves compared to the yuan’s roughly 2%. Xi emphasized the need for foundational reforms, including a strong central bank for effective monetary policy, internationally competitive financial institutions, and a world-class financial center to attract global capital. These steps would require greater capital account openness and full convertibility—challenges Beijing has historically managed cautiously to maintain control. Analysts note that while the yuan has gained ground as the second-largest currency in trade finance and seen surges in cross-border use (bolstered by ties with partners like Russia), achieving true reserve status remains a long-term goal, not an overnight shift, and would limit US leverage in sanctions or financial diplomacy.

This development signals escalating de-dollarization efforts by China, framed within broader economic uncertainties and US policy shifts, including discussions around a weaker dollar under potential new leadership influences. Xi’s comments have sparked reactions highlighting both opportunities for multipolar finance and barriers like restricted capital flows that hinder full global acceptance. If pursued aggressively, a stronger yuan role could diversify global reserves, enhance Beijing’s influence in trade settlements (especially in BRICS and Belt and Road partners), and contribute to a more fragmented but balanced international system—though experts caution it won’t displace the dollar’s entrenched position anytime soon.