Stiglitz: “The dollar is not a good reserve currency”
Famous American economist Joseph Stiglitz, Nobel laureate, believes that the role of the U.S. dollar as reserve currency is «doubtful» and represents a risk, according to Bloomberg.
‘We need a global system of reserve currency, “said Stiglitz in a conference held in Bangkok, Thailand. Support of countries like China should ensure serious talks on a new system of reserves, he added.
Dollar depreciated by 12% from 5 March till present, in report with an index that includes the euro, yen and other four reference currencies in the world.
China - which holds the largest reserves of foreign currency in the world - and Russia, had previously demanded the dollar replacement with another currency, a global currency, as the international reserve currency.
“The existing system is in a process of disintegration. The dollar is not a good reserve currency. At the moment, the dollar does not return any yield, but anyone who examines the situation must conclude that there is a risk, “said Stiglitz.
The dollar continues to depreciate as the U.S. government continues to “pump” massive money amounts in the economy, according to an analyst of Pacific Investment Management Co. (PIMCO), the largest global bond fund.
