China’s central bank has reiterated that yuan internationalization remains a core policy objective, with cross-border payments at the center of that strategy. PBOC Governor Pan Gongsheng said China is steadily promoting the renminbi’s global role and aims to build a safer, more efficient, and more diversified international payment framework.
Yuan internationalization remains a long-term policy goal
Speaking at a press conference, Pan said China is “gradually promoting yuan internationalization,” describing the effort as part of the country’s broader reform and opening-up agenda. His remarks suggest that Beijing continues to view the yuan’s wider use in international settlement as a strategic priority rather than a short-term initiative.
Pan also said the PBOC is firmly supporting international financial cooperation and actively participating in global financial governance. He specifically referenced engagement with the European Union and Global South countries such as Brazil, underscoring that the yuan push is tied to broader external economic and diplomatic coordination.
Cross-border payments and currency strength in focus
A major part of the plan is infrastructure. Pan said China will create a “safer, efficient, and diversified” cross-border payment system, a move aimed at improving the yuan’s utility in trade and settlement. For policymakers, payment rails are a key requirement if the currency is to gain broader international traction.
The report also noted that the PBOC has recently allowed the yuan to trade stronger against the U.S. dollar. During the period of rising tensions in the Middle East, the currency posted one of its strongest rallies against the greenback. Analysts cited in the report expect the yuan to continue appreciating over the next five years, supported by a “China Fast, U.S. Slow” growth pattern.
Reserve currency ambitions remain in view
In February, Chinese President Xi Jinping said China should develop a “powerful” currency that is widely used in international trade, investment, and foreign exchange markets, and that can ultimately achieve reserve currency status. That has reinforced expectations that China wants the yuan to play a significantly larger global role over time.
Some market observers interpret that stance as support for the yuan moving closer to what they see as fair value. Goldman Sachs previously estimated that fair value could be 25% above current levels. Even so, the report stressed that the PBOC remains cautious in managing the yuan’s fixing and is likely to continue balancing international ambitions with global macroeconomic risks.