World

China proposes replacing the dollar with a new reserve currency

by sidonie | March 24, 2009 at 12:51 am

417 views | 26 Recommendations | 6 comments

China proposes replacing the dollar with a new global reserve currency controlled by the International Monetary Fund (IMF), an initiative to assert the position of Beijing's approach to economic summit.

The crisis highlights once again the need for creative reform of the international monetary system to an existing international reserve currency, "wrote the Governor of the Central Bank of China, Zhou Xiaochuan, in an article published Monday evening.

Unusual for the Beijing regime, the forum was published in both Chinese and English, a way to give it more weight and give an international audience at the China initiative.

In this forum, the governor does not specifically mention the dollar, but stressed that the current crisis has shown the dangers it had to depend on the currency of one country to international trade, a clear allusion to the greenback.Beijing wants to introduce a reform of the current global financial system dominated by the U.S. and Western governments and enjoy the next summit of the G-20 to plead this cause. China wants to encourage developing countries to make their voices heard in the area of global finance to occcasion of the summit scheduled for April 2 in London.

A global reserve currency is a currency of reference which is held in significant quantities by many governments and institutions and serves as an international assessment for global trade.

In its platform, Mr. Zhou stressed that the new global reserve currency it calls for will not only serve as a reserve currency, but also used in international trade, investment, pricing of goods and the accounting firms.

More information and source : http://business.timesonline.co.uk

0 See all footage | View Slideshow

Share: email story | add to any | | facebook | stumbleupon

recommend This comment thread is now closed

Paschen

at 05:14 on March 24th, 2009

Good post there is more about this from Reuters as well as some other sources.

I personally advocate an international common currency based on the EURO model or the CFFA model.

For more info on the subject see also,

http://my.nowpublic.com/world/global-common-currency-avoid-another-financial-crisis

http://www.reuters.com/article/companyNewsAndPR/idUSPEK466920081024

Thank you for the post on this issue. China and the EU as well as Russia, the UAE and AU are not happy at all with the US Dollar nor the way the US are handling the crisis.

Devaluating the Dollar as Obama wants to do will only make the Creditors of the US dept angrier since they will be left with the US dept wile the US will have set it self free.

car1edb

at 23:36 on March 24th, 2009

for sure... Obama/the fed is getting ready to dump $1trillion into the system printed out of nowhere to "fix" the banks, which they say will increase the US monetary base by 15fold! - taking things to the next stage in this process (Hyperinflation here we come!).

info: "Now think about this: If the Federal Reserve increases the U.S. money supply by a factor of fifteen, that means your dollars will be worth only 1/15th the value they represent right now. So a loaf of bread that costs a dollar right now could cost $15 when all this extra money ripples through the system. (Which will obviously take a couple of years, but 2009 will be the beginning of it.)

This is called “hyperinflation.” We’re talking about a loss of over 93% of the purchasing power of the dollar. That, my friends, is called a collapse of the currency."