Finance

Finance

Dollarâ€™s future is questionable

24 March 2009 11:02 (UTC +04:00)

Baku. Vahab Rzayev -APA. China proposed yesterday a sweeping overhaul of the global monetary system, outlining how the U. S. dollar could eventually be replaced as the world’s main reserve currency by the Iinternational Monetary Fundsâ€™ Special Drawing Right. The SDR is an international reserve asset created by the International Monetary Fund in 1969 that has the potential to act as a super-sovereign reserve currency, said Zhou Xiaochuan, governor of the People’s Bank of China.
The Chinese and Russian financial officials emphasized that it would be long-term process needed in resolute position of the international community, and the United States and its political supporters would resist the replacing of US dollar with the worldâ€™s currency. Australian Prime Minister Kevin Rudd said on Monday the U.S. dollar’s position as a key reserve currency was not at risk, notwithstanding a call from China for an overhaul of the global monetary system.
"The dollar’s position remains unchallenged," Rudd said in response to a question at a forum sponsored by the Wall Street Journal.