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Reuters: Russia, China to replace dollar as reserve currency
- Thread starter power
- Start date
Leftists are unemployed and indebted from falling oil prices, so they make idiotic statements such as replacing the dollar.Quote from power:
MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.
Calls for a rethink of the dollar's status as world's sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.
Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week, as the big emerging powers seek to up their influence on decisionmaking globally. Their first ever joint communique did not mention a new currency but the source said the issue was discussed.
"They (China) did not formally put forward their position for the G20 summit but unofficially they had distributed their paper regarding the same ideas (the need for the new currency)," the source told Reuters, speaking on condition of anonymity.
http://www.reuters.com/article/idINLJ93633020090319
China to Keep Buying Treasurys: Bank Official
China will continue to buy US Treasurys, viewing the credit risk as low overall, a senior central bank official said on Monday.
"Investing in American Treasurys, as an important part of our foreign exchange reserve management, will continue," Hu Xiaolian, a vice governor of the People's Bank of China, told a news conference on China's preparations for next month's G20 summit in London.
Premier Wen Jiabao said on March 13 that he was worried about China's heavy exposure to the United States.
Bankers assume about two-thirds of China's nearly $2 trillion in reserves is parked in dollar assets, primarily US government and other bonds.
Hu, who is also head of the State Administration of Foreign Exchange, said China would pay close attention to changes in the value of its Treasury holdings.
"US Treasurys are an important part of our foreign exchange reserves. So we naturally care about the security and investment return on US Treasurys," she said.
Turning to the dollar, Hu disputed the argument heard in some circles that the US economy and markets are in such deep trouble that the dollar's global supremacy is under threat.
She said China's view was that studies could begin of a multi-polar global currency system but that the dollar remained the key currency in terms of trade, settlement, payments and pricing.
The dollar also dominated financial investment.
That was why China, though favoring research into a new multi-currency system, believes the current priority is to step up supervision of the US economy and its financial markets, Hu said.
On the currency composition of China's reserves, she said Beijing took long-term factors into account such as the structure of China's payments and trade; the risks and returns on various currencies; and the liquidity of different currencies.
China would not be swayed in determining the make-up of its portfolio by short-term volatility in currency markets, she said.
http://www.cnbc.com/id/29833977
China will continue to buy US Treasurys, viewing the credit risk as low overall, a senior central bank official said on Monday.
"Investing in American Treasurys, as an important part of our foreign exchange reserve management, will continue," Hu Xiaolian, a vice governor of the People's Bank of China, told a news conference on China's preparations for next month's G20 summit in London.
Premier Wen Jiabao said on March 13 that he was worried about China's heavy exposure to the United States.
Bankers assume about two-thirds of China's nearly $2 trillion in reserves is parked in dollar assets, primarily US government and other bonds.
Hu, who is also head of the State Administration of Foreign Exchange, said China would pay close attention to changes in the value of its Treasury holdings.
"US Treasurys are an important part of our foreign exchange reserves. So we naturally care about the security and investment return on US Treasurys," she said.
Turning to the dollar, Hu disputed the argument heard in some circles that the US economy and markets are in such deep trouble that the dollar's global supremacy is under threat.
She said China's view was that studies could begin of a multi-polar global currency system but that the dollar remained the key currency in terms of trade, settlement, payments and pricing.
The dollar also dominated financial investment.
That was why China, though favoring research into a new multi-currency system, believes the current priority is to step up supervision of the US economy and its financial markets, Hu said.
On the currency composition of China's reserves, she said Beijing took long-term factors into account such as the structure of China's payments and trade; the risks and returns on various currencies; and the liquidity of different currencies.
China would not be swayed in determining the make-up of its portfolio by short-term volatility in currency markets, she said.
http://www.cnbc.com/id/29833977