The IMF calls for support to the dollar
February 16th, 2010
The International Monetary Fund Managing Director, requested the support of world economies towards the continuity of the dollar as reserve currency.
It's been a couple of months that countries like China, India, Brazil and Russia are requesting that the dollar is replaced as an official reserve currency. In any case, we ask that international trade and assessments are carried out according to a new transnational currency to replace the U.S. in global reserves
Another proposal to replace the dollar focused on creating a multi-currency reserve system in which currencies like the euro, the yen or Chinese yuan itself also be considered.
However, the International Monetary Fund, although considered these proposals as "valuable", called for restraint.
According to the IMF official these proposals will be subject of discussion in the future, about a possible global monetary reform.
For now sought the support the dollar. Further, the U.S. has asked China in the last five years to increase the international value of its currency to reduce its trade surplus with the markets of developed countries, and although China has done (since 2005 the yuan has appreciated more than 10 percent against the dollar) Washington calls further efforts.
According to the spokesman for the IMF a revaluation of the yen and other Asian currencies against the dollar would help increase the purchasing power of families, increase the percentage of the income of workers in the economy and provide incentives to redirect investment.
However, this revaluation is weighed on the Asian giant as it automatically implies a decrease in the competitiveness of their products abroad.
Tags: currency, the economy, the IMF