The Wall Street Journal
March 23, 2009
People’s Bank of China Gov. Zhou Xiaochuan called Monday for the creation over time of an international reserve currency that isn’t linked to any one nation as part of reform of the international financial system.
[efoods]”The reestablishment of a new and widely accepted reserve currency with a stable valuation benchmark may take a long time,” Zhou said in an essay published on the central bank’s Web site Monday, titled “Reform of the International Monetary System.”
Zhou didn’t explicitly mention the role of the U.S. dollar, but said having a national currency act as an international reserve currency may have outlived its usefulness and that a desired goal now should be creating an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run.
Beijing also Monday reiterated its call for reform of the International Monetary Fund but said it would be willing to consider short-term ways of bolstering the IMF’s resources to help it fight the global financial crisis.
PBOC Vice Gov. Hu Xiaolian said Beijing would “actively” consider buying IMF bonds if the institution decides to issue bonds.
A long-running debate about giving developing nations a bigger say in the IMF in exchange for more funding has grown more urgent as the financial crisis ensnarls a growing list of nations, most recently in Eastern Europe. While the U.S. and some European countries, such as the U.K., look to nations like China to bolster IMF resources, Beijing has linked contributions with increasing the voice of developing nations and broader IMF reforms.