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China backs talks on dollar as reserve -Russian source

Discussion in 'Financial Cents' started by Clyde, Mar 21, 2009.

  1. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    China backs talks on dollar as reserve -Russian source
    Thu Mar 19, 2009 11:24am EDT Email | Print | Share | Reprints | Single Page [-] Text [+]
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    By Gleb Bryanski

    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.

    The source said the Chinese paper envisaged the International Monetary Fund's Special Drawing Rights (SDRs) being first assigned a role of a clearing currency on some transactions and then gradually becoming the main global reserve currency. "They said that the role of reserve currency should be given to SDR," the source said.

    A U.N. panel of experts is also looking at using expanded SDRs, originally created by the International Monetary Fund in 1969, but now used mainly as an accounting unit within similar organisations as a new reserve currency instead of the dollar.

    Currency specialist Avinash Persaud, a member of the U.N. panel, told a Reuters Funds Summit on Wednesday that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

    The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent's economic clout, which can be valued against other currencies and against those inside the basket.

    The Russian source said Moscow was aware that the emergence of the new global currency would not happen overnight and said its goal was to initiate a discussion about it at the G20 summit in London on April 2.

    The source said that India did not object to the discussion but was not prepared to take the lead. The source said South Korea and South Africa backed the idea, while developed nations were not "allergic" to it.

    "We are not waiting for everyone to say: 'How beautifully it has all been formulated, let's subscribe to it'," the source said. "The main idea is to start a discussion about it."

    Russia holds about half of its reserves, the world's third-largest, in dollars, with the rest in euros and pounds. Prime Minister Vladimir Putin has called on reserve currency issuers to show more financial discipline.

    Finance Minister Alexei Kudrin told reporters on the sidelines of the G20 finance ministers meeting that it would take up to 30 years to create a new super-currency, suggesting there was no unity in Russia on the issue.

    President Dmitry Medvedev's top economic aide and G20 sherpa Arkady Dvorkovich is behind the Kremlin's G20 proposals, made public one day after Kudrin returned from England. (Reporting by Gleb Bryanski; editing by Mike Dolan/Patrick Graham)

    1. Who owns Reuters & the AP? The Rothschild family
    2. Who are the biggest international bankers? The Rothschild family
    3. Who are behind the financial dump of the US to create a one world currency?

    My guess would be......
  2. Brokor

    Brokor Live Free or Cry Moderator Site Supporter+++ Founding Member

    Try converting the years into months.

    It has already been ready to print, artists work done. Never forget that these occurrences which appear to be accidental, are well planned and scientifically executed. A global currency has been the goal for generations.
  3. Tango3

    Tango3 Aimless wanderer

    Sounds like an act of war...

    But the supremacy of the dollar must end if US hegemony is to end. US hegemony - like all hegemonies in history - has been a bane upon humanity. It has brought death and destruction to millions through wars and conflicts. It has widened the gap between the 'have-a-lot' and the 'have-a-little' right across the globe. It has reinforced global authoritarianism and stymied the growth of global democracy and international law. It has given rise to antagonism and antipathy between civilizations, especially between the Western and Muslim worlds. It has denied equality and respect to civilizations and cultures outside the West. It has led to global environmental degradation and a global climate crisis. Global hegemony has also provoked a vile and vicious reaction from a fringe within the Muslim world in the form of global terror.

    I don't think he likes us very much...
  4. Revelation1412

    Revelation1412 Monkey++

    The dollar is headed for a fall
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