BEIJING, March 24 (RIA Novosti) - The chairman of the
People's Bank of China has spoken out in support of Russia's
proposal to create a new global reserve currency as an
alternative to the U.S. dollar, Xinhua news agency reported on
Tuesday.
Zhou Xiaochuan wrote in an essay posted on the bank's
website that the goal of the international monetary system is
to "create an international reserve currency that is
disconnected from individual nations and is able to remain
stable in the long run, thus removing the inherent deficiencies
caused by using credit-based national currencies."
Russia earlier submitted a proposal to the G20 summit that
could see the IMF examining possibilities for creating a
supra-national reserve currency, as well as forcing national
banks and international financial institutions to diversify
their foreign currency reserves.
"We believe it is necessary to consider the IMF's role in
this process and also define the possibility and the need to
adopt measures allowing for Special Drawing Rights (SDRs) to
become an internationally recognized super-reserve currency,"
Russia's proposal read.
Hu Xiaolian, a vice governor of the People's Bank of
China, said on Monday that China was ready to discuss Russia's
proposal of a new global reserve currency at the G20 summit.
During the event, Chinese President Hu Jintao will meet Russian
President Dmitry Medvedev and U.S. President Barack Obama.
The G20 summit, involving developed and emerging economies
and international financial institutions, will be held in
London on April 2 with the aim of finding ways to overcome the
ongoing global financial crisis.
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