In brief
On June 18, 2025, during the Lujiazui Forum, Pan Gongsheng, governor of the People’s Bank of China, advocated for a multi-currency global financial system, cautioning against the risks of depending on a single country's currency. His remarks, though indirectly referencing the U.S., highlighted the potential for fiscal issues in dollar-dominant economies to create worldwide financial instability.
The Trump administration's strategy of weakening the dollar could foster competitive exports but may also escalate U.S. borrowing costs amidst growing budget deficits, revealing the delicate balance in the pursuit of economic stability.
