|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Monday 19th of April 2010
March 26, 2009    

China places pressure at G20 summit for changes to global financial system

Bookmark and Share

by Peter Charalambous
”China

Just a few days before the G20 summit in London, China has placed even more pressure on world leaders to amend the global financial system.

China has not been as affected as most of the other G20 nations but the country is pushing hard for changes due to a loss of confidence in the current system.

As part of the changes, China is calling for a new international reserve currency as result of the weakness and instability of the US dollar as China seeks a leading role within the G20 summit.

The Chinese central bank governor, Zhou Xiaochuan, has put further pressure on the International Monetary Fund to create a super-sovereign reserve currency having expressed concerns of the effect of US attempts to stimulate the economy.

China’s high exposure to the US currency denominated financial assets has caused concern amongst China’s policymakers.

The central bank has just agreed a currency swap with Indonesia, adding to other agreements set up with South Korea, Hong Kong, Malaysia and Belarus, which is further proof of ambitions for the yuan to play a larger global role.

Over the last three months, the yuan has risen over heightened speculation that US policy and measures to tackle the downturn would devalue the dollar.

Discuss this in the Finance Markets forums

Story link: China places pressure at G20 summit for changes to global financial system




Related financial stories to: China places pressure at G20 summit for changes to global financial system:
Previous: «
Next: »

Visited 1057 times, 3 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , , , , new international reserve currency, , , Zhou Xiaochuan