New Currencies to Emerge, Challenge USD: Says China Central Bank Chief

China’s central bank Governor Pan Gongsheng said that he expects new currencies will emerge and challenge the global order of the USD. He indicated that a “multi-polar international monetary system” would replace the traditional financial sector dominated by the West and the US.

Speaking at China’s flagship financial forum in Shanghai, Gongsheng stressed that the USD “established its dominance” after World War II. He added that it “retained its status up till now” and its dominance might soon begin to erode to make way for the new world order.

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Basket of Currencies Will Overtake the USD, Says China’s PBOC Chief

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Source: Fox Business

Gongsheng revealed that the world is not depending on a single currency anymore, stressing that “excessive reliance” will only hurt the prospects of other nations. The Governor of the People’s Bank of China said that a basket of currencies could become the norm after the USD’s exit.

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“In 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,” without the involvement of the USD, China’s central bank chief said.

His statement comes after the Chinese yuan is gearing up to compete with the USD on the global scale. China is working towards the internationalization of the Chinese yuan and is the first in line to compete with the dollar. In addition, the euro and pound are also in the race while other leading currencies are eyeing the top spot.

Also, the PBOC chief revealed that China supports multiple currencies over a single currency like the USD calling the shots. The financial world will “overcome the inherent problems of a single sovereign currency as the dominant international currency,” he said. Moreover, the first step to reach there is to make local currencies stronger, which is already occurring through the de-dollarization process.

  • china
  • currencies
  • Pan Gongsheng
  • USD

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