During a financial forum in Shanghai, People's Bank of China Governor Pan Gongsheng highlighted the country's ambition to enhance the role of the renminbi in the global financial system. He stated that the world is entering a new phase where dollar dominance is becoming increasingly uncertain.
Transition to a Multi-Polar Currency System
Pan Gongsheng remarked that a multi-polar international monetary system necessitates avoiding excessive reliance on a single currency. He emphasized the need for several sovereign currencies to balance each other. He pointed out that the changes following the 2008 financial crisis, including the rise of both the renminbi and the euro, represent the most significant transformations in the last two decades.
Development of Infrastructure for International Transactions
Pan also announced that six foreign financial institutions, including OCBC Bank in Singapore, have joined CIPS, an alternative to the international SWIFT system. Simultaneously, a new digital renminbi operations center has been opened in Shanghai, indicating China's intention to expand its digital currency program internationally. Additionally, a memorandum of understanding was signed between China and the European Central Bank to facilitate regular dialogue on policy.
China's Response to G7 Criticism and Trade Disputes
Against the backdrop of the G7 meeting, Pan Gongsheng highlighted the rising tensions between China and the West. Chinese Ministry of Foreign Affairs spokesman Guo Jiakun dismissed the G7 statements as 'irresponsible' and 'manipulative'. He rejected accusations that China was violating international norms and characterized them as excuses for protectionism. Guo also called for cooperation rather than conflict between China and the EU.
China continues to bolster its efforts to integrate the renminbi into the global economy, emphasizing the importance of currency diversity and the need for exchange with other nations despite the increasing tensions with Western powers.
