US rejects China's call for a global currency
Washington, Mar 25: US officials on Tuesday, Mar 25 rejected calls from China and Russia for the international community to shift towards a global reserve currency that could replace the dollar.
At a congressional hearing in Washington, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke said they opposed the idea that was floated by the head of China's central bank earlier on Tuesday, Mar 24.
Zhou Xiaochuan, the governor of the People's Bank of China, suggested a 'gradual process' of reform away from the dollar and towards an international currency reserve under the International Monetary Fund.
China's government has expressed concerns in the last month over its nearly $1-trillion holdings of US government debt amid the worst global recession since World War II, forcing the White House to insist that China's reserves are still in good hands.
Russia last week said it would propose the idea of a global reserve currency, which might be more stable in times of economic crises, at the Group of 20 nations summit of the world's leading economies next month.