| China Calls for Global Reserve Currency |
|
|
|
| by Tom McGregor | Thu, Jul 2, 2009, 10:42 AM |
|
Reuters reports that, "an G8 source who was involved in the negotiations said China made the request during preparatory talks about a joint statement to be issued on the second day of the summit in L'Aquilla by the G8 plus the G5 (Brazil, India, china, Mexico and South Africa) and Egypt. This forum, the so-called "G14" gathers together on July 9 to converse about the financial crisis, trade and climate change and for the first time a G8 summit will also issue a joint G14 statement. Immediately after the news, the euro surged to about half a cent to session highs about 1.42 against the dollar. According to Reuters, "a European source with knowledge of preparations for the summit also said China had raised the subject of a reserve currency debate and that it might be mentioned during the meeting, though the source added: 'Any country at the meeting can raise the issue as they see fit. But whether there is a specific mention in the communique remains open.'" The European source claimed that shepas would discuss this further in preparatory talks on Friday. The debate centers on proposals by a few emerging powers that an alternative should be found to the US dollar for the sake of the global reserve currency, to emphasize the shifting balance of power in the globalized economy. China has been especially vocal, since it holds more US Treasury debt than any other nation and has expressed concerns that Washington's gargantuan spending on economic stimulus programs may ignite inflation, harming the value of China's dollar-denominated reserves. As reported by Reuters, "China's central bank governor said in March the world should consider using the International Monetary Fund's Special Drawing Rights (SDRs) as a super-sovereign currency. The SDR is an international reserve asset allocated to IMF members and its exchange rate is determined by a basket of dollars, euros, sterling and yen." To read the entire article from Reuters, link here: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Bookmark
Email This
Comments (2)
...
written by Dr. Little , July 02, 2009 My. My. My....... And is this the same CHINA whose own banks have recently been reported to be on the brink of disaster? Is it a good idea to make the currency of a nation with banking problems like this the new "world's standard currency" ?? Say, that sounds sort of like one of the "wacky" ideas that an OBAMA speechwriter might "write up" for the old POTUS to read from a TelePrompter......... Are the CHICOM writing any of the OBAMA speech material ??? Write comment
|
|
China has requested to debate proposals for a new global reserve currency during next week's Group of Eight summit in Italy and the topic could be referred to briefly in the summit statement, G8 sources revealed on Sunday.
| < Prev | Next > |
|---|
