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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
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By Frank Ahrens  |  September 8, 2009; 2:10 PM ET
Categories:  The Ticker  | Tags: dollar, euro, reserve currency  
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Next: Madoff Feeder Fund Agrees to Settlement with Mass. Investors


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

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