New Economy

Europe and China Can Only Dream of Rivaling Dollar For Now

Having a truly global currency has its downside, and neither has suggested it’s ready to accept that.

Dollar Rises Most Since August As China Rate Increase Saps Risk — Photographer: Andrew Harrer/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Chris Anstey

February 28, 2026 at 11:45 AM UTC

This article is for subscribers only.

A popular narrative in financial markets since Donald Trump returned to the White House has been the so-called debasement of the US dollar, and it’s flared up again these past few weeks. This time, it comes with a complement: Authorities behind the two main pretenders to the dollar’s crown — the euro and yuan — are actively touting enhanced global roles for their own currencies.

Chinese President Xi Jinping has called for “a powerful currency” with wide use in international trade, investment and foreign exchange markets, and the status of a “global reserve currency.” Technically, his remarks dated from 2024 (when, indeed, this newsletter picked up on a strong-yuan policy). But the Communist Party’s recent publication of them speaks to the leadership’s current priority.