China's central bank chief urges 'comprehensive' view on global imbalances
FXI•People's Bank of China Governor Pan Gongsheng urged a broader view of global imbalances at a G20 meeting, saying they cannot be resolved through exchange-rate adjustments alone. He called for attention to financial flows as well as current accounts.
1. Broader view urged
Pan called for a “more comprehensive analytical perspective” on global imbalances at a G20 meeting of finance ministers and central bank governors in Bangkok, a central bank statement said. He said analysis should consider financial flows as well as current accounts, which cover goods and services trade.
2. Exchange rates and trade
Pan said deficit and surplus countries should work together to achieve a dynamic equilibrium in the global economy. His comments came as China's trade surplus surges and European leaders intensify calls for a stronger yuan. Earlier this month, the People's Bank of China said it neither needs nor intends to gain a competitive trade advantage through exchange-rate depreciation.
