WB president warns dollar's position
- Source: Global Times
- [16:28 November 12 2009]
- Comments
World Bank (WB) president Robert Zoellick warned that the US dollar may lose its position as the world's predominant reserve currency if the problems of trade and budget deficits in the US were not solved. He made the remark Wednesday at a conference in Singapore.
He said Americans should be reminded that the dollar could lose its position as the predominant reserve currency. He added that Americans spent 20 years' efforts to get this position, and they should not take it for granted.
Zoellick said that in view of China's economic growth trend and the efforts the Asian country has made to pursue the internationalization of the yuan, the Chinese currency may become one of the possible international reserve currencies that may replace the dollar.
Realizing the diversity of international reserve currencies is one of the efforts that must be made to achieve balanced growth of the global economy after the financial crisis, Zoellick pointed out.
According to statistics from the International Monetary Fund (IMF), at present, the dollar makes up about 62 percent of foreign currencies' reserves in central banks worldwide, hitting the lowest point in history. Meanwhile, the proportion of reserves of the euro and Japanese yen have risen.
