BBC NEWS | Business | China suggests switch from dollar - 0 views
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China's central bank has called for a new global reserve currency run by the International Monetary Fund to replace the US dollar.
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China's central bank has called for a new global reserve currency run by the International Monetary Fund to replace the US dollar. Central bank governor Zhou Xiaochuan did not explicitly mention the dollar, but said the crisis showed the dangers of relying on one currency. With the world's largest currency reserves of $2tn, China is the biggest holder of dollar assets. Its leaders have often complained about the dollar's volatility.
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Mr Zhou said the dollar could eventually be replaced as the world's main reserve currency by the Special Drawing Right (SDR), which was created as a unit of account by the IMF in 1969. "The role of the SDR has not been put into full play, due to limitations on its allocation and the scope of its uses," he said. "However, it serves as the light in the tunnel for the reform of the international monetary system."
