U.S.A. defend the dollar
April 3rd, 2009, Friday, 07:53
U.S. Treasury secretary, Timothy Geithner, said Wednesday that the U.S. will do all is possible for dollar, to remain dominant in the world, this way rejecting the China proposal to create a new currency instead of U.S.
Chinese central bank governor, Zhou Xiaochuan, has proposed to use Special Drawing Rights (SDRs)-used by the International Monetary Fund (IMF) - for the establishment of foreign exchange reserves and expansion basket of currencies that offer the base for the DST assessment, to include all stocks currencies of all major economies of the world.
China has currency reserves worth $ 2,000 billion. Geithner this way has repaired a blunder done earlier, in the same day, when he said “is very open” to Beijing proposal, which led to depreciation of the dollar by 1.3% compared to the euro.
After EU Commissioner for Economy and Business Monetary, Joaquin Almunia, rejected the request of China, the IMF chief, Dominique Strauss-Kahn, said that Beijing proposal is legitimate, but don’t consider that the present situation will change very soon.
