Pan rejects exchange rate adjustments as cure for global imbalances
On October 16, 2026, People's Bank of China (PBOC) Governor Pan Gongsheng met Valdis Dombrovskis, Christine Lagarde and Kyriakos Pierrakakis at the IMF/World Bank Annual Meetings. They discussed China-EU policies and monetary and financial cooperation.
Rebalancing beyond exchange rates
Pan said global imbalances cannot be resolved through exchange rate adjustments, citing the global division of labor, international monetary system flaws and persistent fiscal deficits and consumption.
Exchange rates reflect growth, monetary policy, financial markets, geopolitics and sudden shocks; their relationship with current accounts is not straightforward.
He called for joint action by deficit and surplus economies.
China will implement its 15th Five-Year Plan, combining investment in physical and human capital, developing services and pursuing structural reforms to improve internal and external balance.
Pan said China has expanded domestic demand and advanced changes to its growth model in recent years.
Cooperation through established channels
China offered closer coordination through the China-EU Financial Working Group and annual meetings of PBOC and European Central Bank (ECB) governors.
Pan met European Commissioner for Economy and Productivity Dombrovskis, ECB President Lagarde and Eurogroup President Pierrakakis.
On October 14-16, 2026, he also met Banque de France Governor Emmanuel Moulin and Sveriges Riksbank Governor Erik Thedéen separately to discuss global conditions and bilateral monetary and financial cooperation.
PBOC Deputy Governor Xuan Changneng attended all the meetings.
Joint effort over currency adjustment
The EU said rebalancing requires efforts from all stakeholders.
It will increase investment and advance internal market integration to strengthen productivity and competitiveness.
It also offered closer policy communication with China, cooperation and management of differences.