China Eyes 2026 for Major Push to Globalize the Yuan

TOKYO — As 2026 approaches, a major question for global finance is the future of China's currency, the yuan. Analysts are watching for signs that President Xi Jinping's government will take new steps to increase its international use. Recent moves suggest Beijing is preparing for a significant push. This effort aims to challenge the dominance of the US dollar in global trade and finance. Making a currency "global" or "internationalized" means it is widely used for trade, investment, and held by foreign governments as savings. For China, this would reduce reliance on dollar-based systems. A global yuan would allow China to settle more of its massive international trade in its own currency. It could also make it easier for foreign investors to buy Chinese stocks and bonds. However, experts note major hurdles remain. These include China's strict controls on the movement of money across its borders, which conflict with the open access needed for a top global currency. The coming year will be a key test of how quickly and fully China is willing to open its financial system to the world.