IMF head eyes global currency change, presses on yuan
Tue, Nov 17 2009
By [URL="http://blogs.reuters.com/search/journalist.php?edition=us&n=alan.wheatley&"]Alan Wheatley[/URL] and [URL="http://blogs.reuters.com/search/journalist.php?edition=us&n=simon.rabinovitch&"]Simon Rabinovitch[/URL]
BEIJING (Reuters) - The imperative of greater global currency stability means the world can no longer rely, as it has done since the end of the gold standard, on a currency issued by a single country, the head of the IMF said on Tuesday.
Dominique Strauss-Kahn, the managing director of the International Monetary Fund, restated his view that a new global currency might evolve out of the Special Drawing Right, the Fund's in-house unit of account.
"That probably has to be a basket," Strauss-Kahn said of the eventual replacement for the dollar. "In a globalized world there is no domestic solution," he told a forum.
Speaking later at a news conference, Strauss-Kahn reiterated the message that has been a constant refrain during his visit -- that China needs a stronger yuan as part of a package of policies to help rebalance its economy by promoting domestic demand.
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Tue, Nov 17 2009
By [URL="http://blogs.reuters.com/search/journalist.php?edition=us&n=alan.wheatley&"]Alan Wheatley[/URL] and [URL="http://blogs.reuters.com/search/journalist.php?edition=us&n=simon.rabinovitch&"]Simon Rabinovitch[/URL]
BEIJING (Reuters) - The imperative of greater global currency stability means the world can no longer rely, as it has done since the end of the gold standard, on a currency issued by a single country, the head of the IMF said on Tuesday.
Dominique Strauss-Kahn, the managing director of the International Monetary Fund, restated his view that a new global currency might evolve out of the Special Drawing Right, the Fund's in-house unit of account.
"That probably has to be a basket," Strauss-Kahn said of the eventual replacement for the dollar. "In a globalized world there is no domestic solution," he told a forum.
Speaking later at a news conference, Strauss-Kahn reiterated the message that has been a constant refrain during his visit -- that China needs a stronger yuan as part of a package of policies to help rebalance its economy by promoting domestic demand.
Read the entire article
