PBOC chief urges broader view on global imbalances at G20
People's Bank of China Governor Pan Gongsheng called for a more comprehensive analytical perspective on global imbalances, saying attention should extend beyond current account and exchange rate adjustments to financial channel money flows. He stressed that imbalances cannot be resolved through exch
The People's Bank of China Governor Pan Gongsheng has urged a "more comprehensive analytical perspective" on global imbalances, in a fresh defence of China's policies against criticism from trade partners.
Speaking at a G20 meeting of finance ministers and central bank governors in Bangkok on Thursday, Pan said attention should be paid not only to the current account, which covers trade in goods and services, but also to money flows through financial channels, according to a central bank statement.
Global imbalances cannot be resolved through exchange rate adjustments alone, he argued. Deficit and surplus countries should work in concert to achieve a dynamic equilibrium in the global economy, Pan was quoted as saying.
The remarks come as China's trade surplus surges and European leaders have intensified calls for a stronger yuan.
The PBOC pushed back against foreign criticism of its exchange-rate policy in a statement earlier this month, saying it neither needs nor intends to obtain a trade competitive edge through exchange-rate depreciation.