At the third G20 finance ministers and central bank governors’ meeting in Bangkok, Pan Gongsheng, governor of the People’s Bank of China (PBOC), argued that focusing solely on exchange rates is an inadequate strategy for addressing global economic imbalances. Pan advocated for a broader analytical framework that moves beyond current account balances to include financial factors.

Pan emphasized that the responsibility for correcting these imbalances should not fall on a single group of countries. Instead, he called for a collaborative approach where both surplus and deficit economies take active roles in policy coordination. The PBOC governor’s comments suggest that China is pushing back against international pressure to rely on currency valuation as the primary tool for economic adjustment, favoring instead a multi-faceted approach to global financial stability.