Pan Gongsheng: In the future, it is possible to increase the regular issuance of SDR and expand the issuance scale.

The Governor of the People's Bank of China, Pan Gongsheng, stated today at the 2025 Lujiazui Forum that theoretically, the Special Drawing Rights (SDR) can better overcome the inherent problems of a single sovereign currency as the dominant international currency, with stronger stability and better ability to fulfill the function of global public goods, regulate global liquidity, implement crisis assistance, and has the characteristics of becoming a super-sovereign international currency. However, for the SDR to become the dominant international currency, there is a lack of international consensus and driving force at the political level, and the current market size, depth, and liquidity are insufficient, limiting its effectiveness. Promoting the SDR as the dominant international currency requires member countries to consolidate consensus at the political level, which is not easy in the current international environment. Operationally, it is necessary to optimize the mechanism arrangement and gradually expand the use of SDR. In terms of distribution and issuance mechanisms, the IMF mainly uses SDR allocation for crisis response, often through one-off large issuances. In the future, regular SDR issuances can be increased and the issuance scale expanded. In terms of usage scope, it is important to actively promote the participation of the private sector and various market entities in using SDR in international trade, investment and financing activities, issuing bonds priced in SDR, enhancing the role of SDR as a reserve asset, and establishing an SDR settlement mechanism that can adapt to widespread use.