Network News

X My Profile
View More Activity
2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Dollar Again Under Attack as World's Reserve Currency

A United Nations panel has piled onto the dollar-haters, which include China and Russia, calling for a different kind of world reserve currency than the U.S. dollar.

The dollar is the world's reserve currency because the world does business in dollars. Despite the carping, China still wants dollars by the billions, as it continues to snap up U.S. debt.

Nevertheless, probably because they hate being dependent on the dollar, China and Russia have called for a different backup currency, such as the International Monetary Fund's special drawing rights, which are -- to quote the IMF: "neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members."

Few think such a thing is practical. Except, perhaps, for the U.N.'s conference on trade and development.

This report, which came out yesterday, comes as the dollar sits at a year-long low against the euro.

-- Frank Ahrens
Sign up to get The Ticker on Twitter

By Frank Ahrens  |  September 8, 2009; 2:10 PM ET
Categories:  The Ticker  | Tags: dollar, euro, reserve currency  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: September 6, 2009
Next: Madoff Feeder Fund Agrees to Settlement with Mass. Investors

Comments

Abroad educating for a lady, far out of reach, prettier than ever, admired by all who see her. Do you feel that you have lost her? She spared me the trouble by dismissing me. No problem, just solutions so she is happy. It's alwayssomething you know.

Posted by: Dermitt | September 9, 2009 10:59 AM | Report abuse

The IMF has been ripping off the US for years.

Posted by: Dermitt | September 9, 2009 12:55 PM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company