The governor of China’s central bank has expressed a commitment to enhance collaboration with emerging economies on various fronts and to assist them in having a more influential role in global financial governance during his speeches in Saudi Arabia.
Pan Gongsheng, head of the People’s Bank of China, stated his intention to collaborate with the Gulf nations to ensure currency stability, increase bilateral financial investments, and develop integrated payment systems during a gathering with regional central bank governors.
He also noted that China would partner with members of the Gulf Cooperation Council (GCC) on initiatives related to digital currency and anti-money-laundering measures, according to a news release from the PBOC on Tuesday.
China has consistently aimed to internationalize its currency, lessen its dependency on the US dollar, and boost its financial independence to promote global trade and investment. This initiative is vital to President Xi Jinping’s ambition of establishing China as a financial superpower.
On the same occasion, during a conference hosted by the International Monetary Fund and the Saudi Finance Ministry, Pan encouraged emerging markets to enhance their exchange rate flexibility and foster cooperation to maintain financial stability amid increasing currency volatility.
“Emerging markets are grappling with escalating challenges such as geopolitical risks, economic fragmentation, rising trade protectionism, decelerating medium-term growth, financial market instability, pressures on cross-border capital flows, and increasing global debt risks,” Pan stated in Alula, Saudi Arabia.
