


SHANGHAI — The governor of China’s central bank outlined a plan Wednesday for a global financial system that relies on several major currencies, not just the dollar, as Beijing steps up its campaign to weaken the U.S. dollar’s primacy.
Pan Gongsheng, governor of the People’s Bank of China, did not mention the dollar by name but gave an extended critique of the potential dangers of international reliance on a single country’s currency.
In a coded reference to the United States, Pan cited the dangers posed by fiscal and regulatory problems in the country issuing the world’s main currency. These problems may “overflow to the world in the form of financial risks and even evolve into an international financial crisis,” he said.
The Trump administration has spoken about weakening the dollar against other currencies to make U.S. exports more attractive to buyers abroad. The dollar has weakened considerably this year, including an 11% decline against the euro.
A weaker dollar could help narrow the U.S. trade deficit. But it could increase the cost of U.S. government borrowing amid ever-rising federal budget deficits.
China has kept the value of its currency, the renminbi, tightly linked to the dollar. That has meant it has fallen along with the dollar, making the price of China’s exports even more competitive in Europe, a major trading partner, and elsewhere.
The dollar is by far the primary currency used in global trade, including when China is involved, followed by the euro. The renminbi has grown in use but remains a minor player in international trade.
Pan and other top Chinese officials spoke Wednesday at the opening of the Lujiazui Forum, the main annual gathering of China’s fiscal policymakers and executives.
China faces obstacles in promoting the renminbi as an alternative to the dollar. One is that China has a huge and rising trade surplus. Much of the renminbi in overseas circulation is typically used to buy more Chinese goods or pay debts to China. China also restricts how renminbi can be moved in or out of the country.