Overview
- Xi writes that China should build a currency widely used in trade, investment and foreign exchange that can attain global reserve status.
- China settled nearly one-third of its roughly USD 6.2 trillion in foreign trade in yuan last year to reduce reliance on the dollar.
- Beijing is advancing alternatives to dollar infrastructure through CIPS, about 50 currency swap lines, and BRICS proposals such as BRICS Pay and a potential common currency.
- Xi describes China as “big but not strong” in finance and frames the upgrade as a long-term project, while analysts at Goldman Sachs estimate the yuan trades about 25% below long‑term fair value.
- U.S. President Donald Trump has warned of heavy tariffs if BRICS proceeds with efforts seen as challenging the dollar’s dominance.