N環球 
China’s central bank chief urges ‘comprehensive’ view on global imbalances at G20
PBOC Governor Pan Gongsheng told G20 finance ministers and central bank governors in Bangkok that global imbalances can’t be fixed by exchange-rate moves alone, urging a broader look at financial-channel flows.
Why it matters
With China’s trade surplus surging and European leaders pressing for a stronger yuan, Pan’s remarks are Beijing’s latest pushback against criticism of its policies and set China’s framing of the global-imbalances debate.
What Pan said
Speaking Thursday at the G20 meeting of finance ministers and central bank governors in Bangkok, Pan called for a “more comprehensive analytical perspective” on global imbalances, according to a central bank statement: look not only at the current account covering goods and services trade, but also at money flows through financial channels. Exchange-rate adjustments alone cannot resolve global imbalances, he said, and surplus and deficit countries should work together toward a dynamic equilibrium.
Context
Earlier this month the PBOC rejected foreign criticism of its exchange-rate policy, saying it neither needs nor intends to gain a competitive edge through depreciation.
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