EU finance chief backs dollar's reserve status
Thursday, 26 March 2009
STRASBOURG, Mar 25 (AFP): A top European economic official said yesterday that the dollar would remain unchallenged as the top reserve currency, after China called for the greenback to be stripped of its privileged status.
"The relative economic powers are changing," EU Economic and Monetary Affairs Commissioner Joaquin Almunia told a news conference at the European Parliament in Strasbourg, France.
"Indeed China and other emerging economies are having a much more important and relevant role in the global economy than before. But I don't expect major structural changes in the role that the dollar plays today as a reserve currency."
People's Bank of China Governor Zhou Xiaochuan said he wanted to replace the dollar, installed as the reserve currency after World War II, with a different standard run by the International Monetary Fund (IMF). China, the top holder of US Treasury bonds with 739.6 billion dollars as of January, according to American figures, earlier expressed concern over its investment as the world's largest economy battles a deep recession.
"The relative economic powers are changing," EU Economic and Monetary Affairs Commissioner Joaquin Almunia told a news conference at the European Parliament in Strasbourg, France.
"Indeed China and other emerging economies are having a much more important and relevant role in the global economy than before. But I don't expect major structural changes in the role that the dollar plays today as a reserve currency."
People's Bank of China Governor Zhou Xiaochuan said he wanted to replace the dollar, installed as the reserve currency after World War II, with a different standard run by the International Monetary Fund (IMF). China, the top holder of US Treasury bonds with 739.6 billion dollars as of January, according to American figures, earlier expressed concern over its investment as the world's largest economy battles a deep recession.