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IMF sees no reason for the U.S. dollar to lose its role as the primary global reserve currency

17 April 2009 10:19 (UTC +04:00)

Baku. Vahab Rzayev - APA-Economics. International Monetary Fund chief Dominique Strauss-Kahn told the National Press Club in Washington, D.C. on Thursday that the "free fall" in the global economy may be starting to abate, and that a coherent and co-ordinated response is needed to address it.

Strauss-Kahn said the fact that countries have increased the IMF’s resources shows that the world has put its trust in the Fund, and countries should approach the IMF early, before the crisis impacts their economies.

He added that he is confident the organization will receive the $500 billion in funds promised by G20 nations to support ailing economies.

Strauss-Kahn said that without a solution to the toxic debt problem, restoring demand will be difficult, and that the plan hinges on banks being willing to sell their toxic assets.

Turning to currencies, Strauss-Kahn said he sees no reason why the U.S. dollar would lose its role as the primary global reserve currency. He also said China’s Yuan has been undervalued and needs to appreciate further, but that China has the right policies in place.