global monetary policy challenges

Key Points:* Zhou Xiaochuan flags global monetary policy coordination issues impacting economies.

• No single institution oversees global macroeconomic strategies.
• Lack of consensus could affect global economic stability. Zhou Xiaochuan, former Governor of the People’s Bank of China, addressed the 2025 Lujiazui Forum on the need for global monetary policy coordination.

Zhou’s remarks highlight a significant gap in macroeconomic policy guidance affecting international financial stability.

Zhou Calls for Unified Global Monetary Strategy

Zhou Xiaochuan shared concerns about the absence of a coordinated global monetary policy framework, emphasizing the interconnectedness of national economies. At the 2025 Lujiazui Forum, he noted the critical need for a cohesive approach among major economies. He identified the “three-no” state—no institution, no tool, and no consensus—as critical shortcomings in current global monetary systems.

The lack of international coordination could lead to unpredictable economic impacts, particularly in emerging markets dealing with policy spillovers. Major reserve currency countries like the U.S. and China must consider global impacts in their monetary policies. Without a central body to guide these efforts, achieving coordination remains a challenge.

Despite his warnings, there have been no immediate market reactions to Zhou’s speech. Crypto leaders and financial institutions have not publicly commented on the issue. The market remains steady, with no significant shifts in cryptocurrency prices or traditional financial assets following the forum.

Bitcoin Volatility Highlights Need for Monetary Reform

Did you know? Global financial forums like the Lujiazui have historically driven discussions on the internationalization of currencies, a topic as impactful today as during the Chinese yuan’s earlier expansion phase.

Bitcoin’s recent price stands at $105,142.85 with a market cap of $2.09 trillion, commanding a dominance of 63.99%, according to CoinMarketCap. The 24-hour trading volume is $51.99 billion, down by 3.44%. Price changes show a 1.70% decrease over 24 hours but a 23.85% increase over 60 days.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 06:45 UTC on June 18, 2025. Source: CoinMarketCap Insights from the Coincu research team suggest that a lack of global monetary policy coordination could increase economic vulnerabilities but offer opportunities for decentralized finance solutions to fill regulatory gaps. This scenario emphasizes the potential rise in technological innovations aimed at enhancing financial system resilience.

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