{"id":31190,"date":"2025-06-18T08:00:37","date_gmt":"2025-06-18T08:00:37","guid":{"rendered":"https:\/\/financialrush.com\/?p=31190"},"modified":"2025-06-18T08:00:37","modified_gmt":"2025-06-18T08:00:37","slug":"chinas-central-bank-chief-expects-new-global-currency-order","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=31190","title":{"rendered":"China\u2019s central bank chief expects new global currency order"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->Chinese economy<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=ed04b26c-657d-4653-859d-c5a560c6b3e9&amp;concept-id=bf38d79f-556e-4f4e-885c-a9e67594140a\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>China\u2019s central bank governor has said he expects a new global currency order to emerge after decades of dominance by the US dollar, with the renminbi competing in a \u201cmulti-polar international monetary system\u201d.<\/p>\n<p>Speaking at China\u2019s flagship financial forum in Shanghai, Pan Gongsheng said the US dollar had \u201cestablished its dominance\u201d after the second world war and \u201cretained its status up till now\u201d. He warned of \u201cexcessive reliance\u201d on a single currency. <\/p>\n<p>\u201cIn the future, the global monetary system may continue to evolve towards a pattern in which a few sovereign currencies coexist, compete with each other, and check and balance each other,\u201d he said, pointing to a growing role for the <a href=\"https:\/\/www.ft.com\/renminbi\" data-trackable=\"link\">renminbi<\/a>.<\/p>\n<p>Pan said the key developments in the international monetary system during the past two decades had been the introduction of the euro and the rise of the renminbi since the global financial crisis in 2008. <\/p>\n<p>The renminbi, he noted, was the world\u2019s second-largest trade finance currency and third-largest payment currency.<\/p>\n<p>His comments came a day after Christine Lagarde, president of the European Central Bank, said the \u201cdominant role of the dollar\u201d was \u201cno longer certain\u201d, creating an opening for the euro to take \u201cglobal prominence\u201d.<\/p>\n<p>Pan\u2019s comments also indicate a renewed urgency in China\u2019s long-standing push for a \u201cmulti-polar\u201d <a href=\"https:\/\/www.ft.com\/currencies\" data-trackable=\"link\">currency<\/a> system, as China clashes with the US over trade and Donald Trump\u2019s imposition of higher tariffs.<\/p>\n<p>Beijing and Washington have entered a fragile truce that reduced tariff levels from an April escalation, but tensions remain elevated under a new US administration that has shaken up international trade.<\/p>\n<p>\u201cWhen geopolitical conflicts, national security interests or even wars occur, the international dominant currency is easily instrumentalised and weaponised,\u201d Pan said.<\/p>\n<p>Pan and Lagarde met in Beijing last week to sign a memorandum of understanding on co-operation in central banking, which includes a framework for regular dialogue.<\/p>\n<p>Pan also noted discussions around greater use of SDRs \u2014 a basket of currencies defined and maintained by the IMF \u2014 as a potential alternative that could help \u201covercome the inherent problems of a single sovereign currency as the dominant international currency\u201d.<\/p>\n<p>His comments coincided with multiple announcements on Wednesday related to China\u2019s push for a more renminbi-centred currency system, including an international operation centre for the digital renminbi in Shanghai. <\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image o-teaser--opinion js-teaser\" data-id=\"4d5dea18-bc4b-4ccf-94d3-1973fd1467cc\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/4d5dea18-bc4b-4ccf-94d3-1973fd1467cc\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2371\/1334\"><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Six foreign institutions, including Singaporean bank OCBC and Kyrgyzstan\u2019s third-largest lender Eldik Bank, also said they would join China\u2019s Cross-Border Interbank Payment System (Cips), an alternative to the Swift global payment system. <\/p>\n<p>Hong Kong and Shanghai authorities also on Wednesday signed an \u201caction plan\u201d to strengthen financial ties, including the management and allocation of renminbi-denominated assets. <\/p>\n<p>Zhu Hexin, deputy governor of the PBoC and head of the State Administration of Foreign Exchange, said Beijing would expand a scheme allowing domestic investors to buy assets outside China. Zhu said the expansion of the Qualified Domestic Institutional Investor scheme would \u201cfulfil the growing onshore needs for offshore investment\u201d. <\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/ed04b26c-657d-4653-859d-c5a560c6b3e9\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Chinese economy myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":6,"featured_media":31191,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-31190","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31190"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/31191"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}