Very shrewdly, China has not proposed that the yuan replace the dollar as the global reserve currency.
After ten years of dollar weakness, a strengthening of the global reserve currency could gradually shift global markets.
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It has been trying to promote the yuan as an alternative to the US dollar as a global reserve currency.
Alternatively, IMF special drawing rights could be used for the purposes of external commitments, until a new global reserve currency has been negotiated.
That, along with the development of the offshore yuan market, will likely lead to the yuan becoming a new global reserve currency at some stage.
And just as you don't need more than one currency circulating in a domestic economy, so you don't need more than one global reserve currency.
It called for the printing of US dollars to be supervised internationally and repeated China's contention that a new global reserve currency might be needed.
Many see dim sum bonds as one of a number of developments that will ultimately lead to the internationalization of the yuan as a global reserve currency.
Also purchase Renminbi-denominated assets as China, in its attempt to position itself as a global reserve currency, will likely lend support to any company that risks default.
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The Federal Reserve and Treasury may face a hard choice between domestic economic recovery and responsible stewardship of the world's global reserve currency and hence global financial stability.
Asked about China's call for a new global reserve currency, Cable said it would be "a sensible way for the world to move" but that it would not happen quickly.
Like Iceland, Britain does not have a global reserve currency, such as the dollar or the euro, to draw on if it needs to act as lender of last resort.
The renminbi might well make a fine regional reserve currency, but the global reserve currency system is likely to gravitate towards a combination of gold, dollar, yen, renminbi and perhaps even oil.
According to a 36-page academic research report by the Peterson Institute for International Economics, China has moved closer to its long-term goal for its currency, the renminbi (RMB), to become a global reserve currency.
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"International supervision over the issue of US dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country, " the commentary said.
Many do not believe that both these currencies fit the global criteria for reserve currency status.
But they are not doing this at a rate that puts the dollar under serious threat of being debased as the global reserve and trade currency of choice.
The emerging markets account for almost half of global GDP but have no reserve currency of their own.
Mr Zhou calls for a radical reform of the international monetary system in which the dollar would be replaced as the main reserve currency by a global currency.
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Because interbank markets are global in scope, the Federal Reserve has also approved bilateral currency swap agreements with 14 foreign central banks.
First, the reserve-currency status of the dollar helped to create global imbalances.
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He documents the greenback's gradual rise as an international currency after the creation of the Federal Reserve in 1913, and its global dominance after the second world war.
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