People’s Bank of China governor urges faster IMF quota reform and outlines a moderately loose monetary policy stance

People’s Bank of China Governor Pan Gongsheng used a keynote speech at an International Monetary Fund and Saudi Arabia co-hosted seminar on emerging market economies to outline policy priorities for emerging markets and to press for faster International Monetary Fund governance reform, including quota realignment. He also reiterated that China is moving toward a more proactive fiscal policy and a moderately loose monetary policy stance to support its ongoing recovery. Pan argued that many emerging markets have strengthened their monetary policy frameworks, foreign exchange reserve management and debt structures, but now face heightened uncertainty from geopolitical and economic fragmentation, rising trade protectionism, weak medium-term global growth momentum, financial market volatility, cross-border capital flow pressures and elevated global public debt risks. He called for greater exchange rate flexibility, stronger public debt management, enhanced macroprudential policy, and tighter financial regulation and supervision, alongside renewed multilateralism, South-South cooperation and stronger international macroeconomic policy coordination. On the IMF, he said China is willing to deepen cooperation to advance global financial governance reform, and urged greater support for developing countries, more effective bilateral and multilateral surveillance and efforts to remove constraints on trade, investment and supply, arguing that current quota shares no longer reflect emerging markets’ weight in the global economy. He reported that China met its 2024 growth target with 5% expansion and said a package of incremental measures introduced since late September helped lift confidence and activity.