[Salon] China’s central bank targets global yuan in first solo 5-year plan in at least a decade

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China’s central bank targets global yuan in first solo 5-year plan in at least a decade

The strategy signals Beijing’s push to build a ‘strong central bank’ capable of driving its financial powerhouse ambitions, analyst says

SCMP

Sylvia Main Shanghai

Published: 4:00pm, 11 Aug 2026Updated: 4:16pm, 11 Aug 2026

China’s central bank has set out its strategic priorities for the coming five years in a stand-alone plan, placing yuan internationalisation high on the agenda as Beijing seeks to build the country into a major “financial powerhouse”.

The People’s Bank of China outlined its broad goals for the 15th five-year plan period under a new reform and development blueprint, which would be accompanied by nine specific action plans, in a statement released on Monday. According to the document, one of the focuses would be advancing the global use of the yuan by expanding the currency’s role in international trade, investment and financing, as well as developing offshore yuan markets.

The PBOC also stated that it aimed to strengthen the cross-border yuan payment system, making it more “multi-tiered and broad-based”. This aligns with Beijing’s push in recent years to promote yuan internationalisation and develop alternative payment infrastructure amid concerns about reliance on the US dollar-based global financial system.

These diversification efforts have gained momentum recently alongside growth in the booming panda bond market – yuan-denominated debt issued by foreign entities in the domestic market – described by investment bank Goldman Sachs as a “historic opportunity”.

Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered, said stand-alone five-year plans, issued by the central bank itself, were relatively uncommon in the past.

“The current move could be linked to the emphasis on building a ‘strong central bank’ in China’s vision of becoming a financial powerhouse,” he said.

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The PBOC did not issue a stand-alone five-year blueprint during the 13th or 14th five-year plan periods, with previous blueprints typically covering the broader financial sector and jointly issued with other government agencies.

The overarching vision of a “financial powerhouse” emerged in 2023 during the twice-a-decade central financial work conference, and is defined by President Xi Jinping through six core pillars, including a “strong currency” widely used internationally and a “strong central bank”.

In its statement, the PBOC also called for accelerating Shanghai’s development as an international financial centre, strengthening Hong Kong’s existing status as a global financial hub and “enhancing the ability to maintain financial stability under more open conditions”.

Additionally, the central bank reiterated its stance of letting market forces guide exchange-rate formation while keeping the yuan generally stable at a reasonable and balanced level.

Domestically, the PBOC pledged to improve its financial policy framework to provide “targeted and robust” support towards major national strategies, strategic sectors and weak links in the economy. The blueprint also highlighted initiatives to build a financial system supportive of technological innovation, develop a “technology board” within the bond market and strengthen financial incentives to boost consumer spending.

Meanwhile, the PBOC stated that it planned to expand the scope of macro-prudential oversight and broaden its regulatory toolkit while advancing the development of a digitised, rule-of-law central bank.

“The People’s Bank of China will make every effort ... to implement the measures outlined in the plan, accelerate the building of China into a financial powerhouse and support high-quality economic development,” the central bank said in the statement.

Sylvia Ma

Sylvia Ma covers China's economy from Shanghai, having joined the Post as a graduate trainee in Hong Kong in 2023. She holds a master’s degree in journalism from the