The head of the Chinese Central Bank expects a new matter for the global currency

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The Chinese central bank ruler said that he expects a new global work order after decades of domination by the US dollar, as Renminbi competes with a “multi -polar international monetary system”.

Speaking at the pioneering financial forum in China in Shanghai, Gongcheng said that the US dollar “proved its hegemony” after World War II and “kept its situation so far.” He warned against “excessive dependence” on one currency.

He said: “In the future, the global monetary system may continue to develop towards a pattern in which some sovereign currencies coexist with each other, and check each other.” Renminbi.

He said that the main developments in the international monetary system during the past two decades have been the introduction of the euro and the rise of Renmane since the global financial crisis in 2008.

He pointed out that Renminbi was the second largest commercial financing currency in the world and the third largest payment currency.

His comments came a day after Christine Lagarde, president of the European Central Bank, said that the “dominant role of the dollar” is “no longer sure”, which created an opening for the euro to take over “global protrusion.”

Ban also indicates a renewed need in the long batch of China for “multiple pole” currency The system, while China with the United States collided with trade and Donald Trump imposed high definitions.

Beijing and Washington entered a fragile truce that reduced the tariff levels from April escalation, but the tensions are still high under a new American administration that shook international trade.

“When geopolitical conflicts, national security interests, or even wars occur, the international dominant currency is easily beneficial and armed,” Ban said.

Pan and Lagarde met in Beijing last week to sign a memorandum of understanding on central banking cooperation, which includes a framework for regular dialogue.

Note that also discussions on the use of SDRS – a basket of specific currencies and maintained by the International Monetary Fund – as a possible alternative that can help “overcome the problems related to one sovereign currency as the dominant international currency.”

His comments coincided with multiple advertisements on Wednesday related to Chinese payment for a more focused currency system on Renminbi, including the International Renminbi Digital Center in Shanghai.

Six foreign institutions, including Singapore, and the third largest lender bank in Kyrgyzstan, said it will join the Chinese -border bank payment system (CIPS), a substitute for the Swift global payment system.

On Wednesday, the Hong Kong and Shanghai authorities signed a “action plan” to enhance financial relations, including managing and allocating assets provided by Renminbi.

Zhu Hexin, Vice Governor of PBOC and head of state administration at foreign currencies, said Beijing will expand a plan that allows local investors to buy assets outside China. Zhou said that the expansion of the qualifying local institutional investor plan “will” sword with the growing wild needs for investment abroad. ”