There is also the problem of the dollar as the international reserve currency.

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In another article, Mr Zhou suggested the creation of a new international reserve currency, managed by the IMF, to replace the dollar.

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It would indeed be ironic if a change in China's exchange-rate policy came not as a result of American pressure, but from China's own disillusion with the dollar as an international reserve currency.

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After these remarks, the head of China's central bank called for the creation of a new international currency reserve to replace the dollar.

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Because it is seen as the reserve currency, prices for commodities and international transactions are denominated in dollars.

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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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Second, the country that issues the reserve currency faces a trade-off between domestic and international stability.

ECONOMIST: The dollar as a reserve currency: Handle with care | The

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.

ECONOMIST: The dollar as a reserve currency: Handle with care | The

"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.

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