China Requests Reserve Currency Debate at G8

Tekmnd · 07-01-2009, 09:41 PM

I consider this huge.
China Requests Reserve Currency Debate at G8

China has asked to debate proposals for a new global reserve currency at next week's Group of Eight summit in Italy and the issue could be referred to briefly in the summit statement, G8 sources said.......

A European source with knowledge of preparations for the summit also said China had raised the subject of a reserve currency debate and that it might be mentioned during the meeting, though the source added: "Any country at the meeting can raise issues they see fit."................

The debate centers on proposals by some emerging powers that an alternative should be found to the U.S. dollar as the global reserve currency, to reflect the shifting balance of power in the globalizes economy......

China Requests Reserve Currency Debate at G8 - China * Asia * News * Story - CNBC.com

uahmed · 07-02-2009, 12:48 AM

Very interesting article tek but I want to see the reaction of other countries.

UncleScr00ge · 07-02-2009, 05:00 AM

There has been a debate surrounding the United States Dollar as the international reserve currency for quite some time. The problem is centered around the fact that countries other than the United States must convert their currency into USD's in order to purchase commodities.

This is the solution I propose:

Quote commodities in a country's own currency

By quoting commodity prices in USD's we create an artificial need to hold dollar reserves in an effort to hedge ForEx risk. Although we could select another currency to be the reserve of choice, the exact same problems would persist. In the same way the Dollar can be quoted in hundreds of currencies, so could commodities. All we would have to do is simply take the spot exchange rate and convert the price into the currency in question. This would eliminate the cost of exchange and bring prices and currencies closer to their true market value.

Simit Patel · 07-02-2009, 06:01 AM

great article tek, thanks for posting.

personally i'd like to see G8 discuss making informedpoints the global reserve currency, but somehow i doubt that idea is going to go over very well

gold is an option that some have proposed, which i favor as well, given its success as a monetary standard throughout history. i expect G8 to favor SDRs, as we have discussed previously.

07-01-2009, 09:41 PM	#1 (permalink)
Tekmnd Community Co-Host Badges About Assets Total Awards: 6 Join Date: Aug 2008 Location: San Diego Posts: 2,372 InformedPoints: 18,999.06 Funds	China Requests Reserve Currency Debate at G8 I consider this huge. China Requests Reserve Currency Debate at G8 China has asked to debate proposals for a new global reserve currency at next week's Group of Eight summit in Italy and the issue could be referred to briefly in the summit statement, G8 sources said....... A European source with knowledge of preparations for the summit also said China had raised the subject of a reserve currency debate and that it might be mentioned during the meeting, though the source added: "Any country at the meeting can raise issues they see fit."................ The debate centers on proposals by some emerging powers that an alternative should be found to the U.S. dollar as the global reserve currency, to reflect the shifting balance of power in the globalizes economy...... China Requests Reserve Currency Debate at G8 - China * Asia * News * Story - CNBC.com Share This \|

07-02-2009, 05:00 AM	#3 (permalink)
UncleScr00ge Badges About Assets Join Date: Jul 2009 Posts: 1 InformedPoints: 0	Reserve Currency Solution There has been a debate surrounding the United States Dollar as the international reserve currency for quite some time. The problem is centered around the fact that countries other than the United States must convert their currency into USD's in order to purchase commodities. This is the solution I propose: Quote commodities in a country's own currency By quoting commodity prices in USD's we create an artificial need to hold dollar reserves in an effort to hedge ForEx risk. Although we could select another currency to be the reserve of choice, the exact same problems would persist. In the same way the Dollar can be quoted in hundreds of currencies, so could commodities. All we would have to do is simply take the spot exchange rate and convert the price into the currency in question. This would eliminate the cost of exchange and bring prices and currencies closer to their true market value.

07-02-2009, 06:01 AM	#4 (permalink)
Simit Patel InformedTrades Founder Badges About Assets Total Awards: 6 Join Date: Mar 2008 Posts: 1,633 InformedPoints: 54,952.94 Funds	great article tek, thanks for posting. personally i'd like to see G8 discuss making informedpoints the global reserve currency, but somehow i doubt that idea is going to go over very well gold is an option that some have proposed, which i favor as well, given its success as a monetary standard throughout history. i expect G8 to favor SDRs, as we have discussed previously. __________________ My Blog \| Quick Guide to IT \| IT Sponsors

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07-02-2009, 12:48 AM	#2 (permalink)
uahmed Badges About Assets Join Date: Jul 2008 Location: Chicago, IL Posts: 284 InformedPoints: 50.03	Very interesting article tek but I want to see the reaction of other countries.