How serious is China about “the introduction of a new reserve currency to replace the dominant U.S. dollar,” one of its proposed steps for creating the “de-Americanized world” that the official Xinhua news agency called for in the run-up to the denouement-cum-deferral of the U.S. fiscal crisis? American commentators’ responses have ranged from the […]
Long viewed as a safe investment in times of economic turmoil, the US dollar, also known as ‘Greenbacks,’ may be losing its safe haven appeal as it suffers strong downward pressures resulting from rising oil & commodity prices, high Federal budget deficits, soaring national debts and economic uncertainty in the aftermath of several financial crises.
China called for the creation of a new currency to eventually replace the dollar as the world’s standard, proposing a sweeping overhaul of global finance that reflects developing nations’ growing unhappiness with the U.S. role in the world economy.