Currency Diversification Can Coexist With Dollar Dominance, Vice Finance Minister Says
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The global dominance of the U.S. dollar and a multi-currency international monetary system aren’t mutually exclusive, as alternatives such as the euro, yuan and Japanese yen are expected to play a greater role in trade and financing to maintain the system’s stability, a vice finance minister of China said on Monday.
The diversification of currencies is part of efforts to form a fairer and more orderly international financial system, according to Liao Min, who spoke at the opening session of this year’s Tsinghua PBCSF Global Finance Forum in Hangzhou, Zhejiang province.
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- The U.S. dollar remains dominant, but the euro, yuan, and yen are expected to play bigger roles in trade and financing for system stability.
- Reforms are needed to give emerging markets more voting power in the World Bank, supporting a fairer international financial system.
- The yuan's share in global payments rose to 4.52% in April, from 3.2% in January 2022.
- 2008：
- Emerging economies’ share of global GDP adjusted for purchasing power parity surpassed that of developed nations.
- January 2022：
- The yuan's share of global payments was 3.2% before the war in Ukraine began.
- April, 2024：
- The dollar’s share as a global payment currency was 47.3%, with the euro, British pound, and yuan trailing behind.
- 2024-05-27：
- A vice finance minister of China stated that the global dominance of the U.S. dollar and a multi-currency international monetary system aren’t mutually exclusive, and emphasized the role of other currencies such as the euro, yuan, and Japanese yen.
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