US rejects China’s call for a global currency
March 25th, 2009 - 4:14 am ICT by IANSWashington, March 25 (DPA) US officials Tuesday rejected calls from China and Russia for the international community to shift towards a global reserve currency that could replace the dollar.
At a congressional hearing in Washington, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke said they opposed the idea that was floated by the head of China’s central bank earlier Tuesday.
Zhou Xiaochuan, the governor of the People’s Bank of China, suggested a “gradual process” of reform away from the dollar and towards an international currency reserve under the International Monetary Fund.
China’s government has expressed concerns in the last month over its nearly $1-trillion holdings of US government debt amid the worst global recession since World War II, forcing the White House to insist that China’s reserves are still in good hands.
Russia last week said it would propose the idea of a global reserve currency, which might be more stable in times of economic crises, at the Group of 20 nations summit of the world’s leading economies next month.
Geithner and Bernanke were asked to reject the proposal during a brief exchange at a committee hearing in the House of Representatives.
“I’m wondering would you categorically renounce the United States moving away from the dollar and going to a global currency as suggested this morning by China and also by Russia?” asked US congresswoman Michele Bachman, a Republican.
“I would, yes,” responded Geithner.
“I would also,” added Bernanke.
- Obama rejects Chinese call for global currency - Mar 25, 2009
- India differs with China on BRICS currency - Apr 11, 2011
- Slow recovery, Europe remain uncertainties: China (Lead) - Mar 12, 2012
- India woos US with $1 trillion infrastructure business (Evening Lead) - Jun 29, 2011
- India plugs trillion dollar opportunity in infrastructure (Daylead) - Jun 29, 2011
- Nobel Laureate calls for new global reserve currency system - Mar 27, 2009
- BRICS to sign unique pact at Sanya to use own currencies for lending and grants - Apr 13, 2011
- China faces price rise pressure - Sep 25, 2011
- Rely less on foreign credit ratings: Chinese official - Dec 26, 2011
- India invites US to help finance infrastructure projects (Second Lead) - Jun 29, 2011
- India returning to high growth path: Pranab Mukherjeee - Jun 28, 2011
- US Fed chief asks Congress to review AIG bailout - Jan 20, 2010
- `US economy impacted by European crisis' - Mar 22, 2012
- BRICS seeks revamp in global monetary system (Roundup) - Apr 14, 2011
- China's GDP growth is likely to reach 10% by 2010 - Jan 05, 2011
Tags: bank of china, committee hearing, currency reserve, economic crises, federal reserve chairman, federal reserve chairman ben bernanke, global currency, global recession, good hands, government debt, international currency, international monetary fund, michele bachman, nations summit, reserve currency, s central, timothy geithner, treasury secretary, world war ii, zhou xiaochuan