Overview
- In remarks republished in the Communist Party journal Qiushi, Xi Jinping urged developing a currency widely used in trade, investment and foreign exchange with the goal of eventual reserve status.
- China reports that nearly one-third of its roughly $6.2 trillion in foreign trade last year was settled in yuan, with growing use in energy transactions with Russia.
- Beijing is expanding the CIPS settlement network and has about 50 currency-swap lines, while BRICS partners continue talks on alternative payment options.
- Economists cited by Axios say the renminbi’s broader role is constrained by capital controls, limited convertibility and managed exchange rates, which reduce its appeal versus dollar assets.
- U.S. political pushback persists as President Donald Trump warns of tariffs over moves challenging dollar dominance, even as Goldman Sachs estimates the yuan trades about 25% below fair value.