Gerardo Martino's men currently sit atop of the Liga table with 37 points from 13 games and their influential playmaker claims that even though the Catalans are not quite at their brilliant best, they are still a cut above all of their rivals.
"Perhaps now we are not at the level of a '10', but we are still remarkably high. We can still reach excellence, but we are doing fine," Xavi told Mundo Deportivo.
"We have to work to reach that level again. But the question we should ask is - what team is playing better than Barca? No one is.
"We are in good form, we have improved and are progressing without drama and understand that there are discussions around the club and that is this club's requirement."
The Spain international then went on to discuss Lionel Messi's fitness problems and insisted that the Argentine will bounce back from his muscular problems.
"He is a very tough guy, mentally strong and he will return," Xavi declared. "He has had four or five years playing everything, remaining decisive in all the games, scoring two or three goals in many of them.
"He is the best in the world but the body says enough and so he must stop. The most important thing is that he recovers well.
"For us, he is the No.1 and we need him a lot. In January, he will return and prove to be the best."
Messi has been ruled out of action for the remainder of the year with a hamstring tear.