China is calling for a global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy

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China is calling for a global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy

China calls for new global currency

China is calling for a global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week’s London summit on the financial crisis.

The surprise proposal by Beijing’s central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. Both the United States and the European Union brushed off the idea.

The world economic crisis shows the “inherent vulnerabilities and systemic risks in the existing international monetary system,” Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund

and said it would help “to achieve the objective of safeguarding global economic and financial stability.”

Zhou did not mention the dollar by name. But in an unusual step, the essay was published in both Chinese and English, making clear it was meant for a foreign audience.

cont’d:

http://abcnews.go.com/Business/story?id=7168919&page=1&singlePage=true

China’s strategic moves that may remove their dependency on the US Dollar as reserve currency

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China is calling for a global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy