BEIJING - China has launched a new currency to replace the dominance of the U.S. dollar and shows a growing confidence in the renewal of the world economy in the next week before the London summit on the financial crisis. The surprise of the Governor of the Central Bank of Beijing expressed grave concern about the use of the obligations of the Government of the United States, China and the pressure for reform of global financial system, dominated by the dollar and Western governments. U.S. and the European Union, on the other hand, brushes. The global economic crisis shows the internal weaknesses and systemic risks in the International Monetary Fund, "said governor Zhou Xiaochuan on Monday in a study of the bank. The creation of a currency basket of currencies in the world by the Fund International Monetary said it will help to ensure the global economy and financial stability. " Zhou is not the name of the U.S. dollar. But in an unusual step, the audit was conducted in English and Chinese, and said it was for an audience abroad. China has always been hard to concentrate on the dollar for most of its trade and currency reserves. Publicly Prime Minister Wen Jiabao in Washington this month to respond to the crisis, the weakening of the dollar and the Beijing 1 trillion of U.S. Treasury and other debt securities. For decades, the dollar was the currency most frequently used. Many governments have a large part of their reserves in dollars. Crude oil and many products are made in U.S. dollars. Companies around the world are in U.S. dollars. But the financial crisis has shown how the economic problems of the U.S. - And beyond the dollar - the damage in the world. China is in a difficult situation. For the value of its currency steady - some say underestimated - the Chinese government has recycled its huge trade surplus, the largest and most liquid U.S. the choice of plants is the national debt. Better isolate the country for all the ills of a country or currency, Zhou said the IMF must become a "reserve" on the body through its 185 members, known as DTS or DTS. He said that should also apply to trade, pricing and accounting, not just financial. Barack Obama Chinese president described the proposal not as a first step, the press conference on Tuesday. "I do not think there is a need for money," said Obama. The President also spoke about the current strength of U.S. currency. "The reason the dollar has given investors because the U.S. has the strongest economy in the world, with the stability of the political system in the world." Earlier in the day, the secretary of the U.S. Treasury Department and President Timothy Geithner Federal Reserve Ben Bernanke has a similar position at a hearing in Congress. They were asked to Rep. Michele Bachmann, R-Minn. Where "categorically renounce the dollar and a global currency," and they both said. Senior European Union officials said that the economy of the dollar as international reserve currency is safe, despite the Chinese. "Everyone agrees that the current reserves, the dollar is and will remain for a longer period," EU Commissioner Joaquin Almunia said on Tuesday after a reunion of the European Commission. Zhou, special drawing rights for the type of value. Currently, based on the values of the four currencies - dollar, euro, yen and pound sterling. "The basket of currencies that are the basis for the evaluation of DTS apply to all currencies of major economies," he wrote. Beijing was very bold in recent months concerned about the financial situation and Washington to work for changes in the economy worldwide. This reflects their financial situation and the growing concern that globalization means the increase of errors in foreign countries violate their own economy. Zhou of China also has a long time on the reform of IMF, World Bank and the global financial system to more voices in China and other developing countries - another theme that is heard by China, Brazil, Russia and India in the summit of the Group of 20 largest economies in the next week. "The delay of the reforms should be adequate representation and an increase of emerging and developing countries," Yi Xianrong, a researcher at the Institute of Economics and Finance at the Chinese Academy of Social Sciences, a reflection of government, government newspaper China Daily. "A voice and greater representation of developing countries is the need of the hour. For example: the world is the largest economy and the largest holder of foreign reserves that China has to find its place in the body of money . Yi has a different idea that the United States and Europe must build on its traditional privilege of appointing the head of the World Bank and IMF. The idea of a new world reserve is not new. Analysts say, but the proposal does not gain much traction because they are obstacles. If the assumption that nations that have long used the dollar have huge foreign exchange reserves of the United States. "We have decades to establish an international reserve currency, and never really progressed," said Michael Pettis, a professor of finance at Beijing University Guanghua School of Management. The management of this currency would be needed to meet the needs of countries in conflict with high and low growth, or trade deficits or surpluses, Pettis said. He said that 16 European countries using the euro face "great difficulties" in the management of monetary policy, even if their economies are similar. "It's hard for me to imagine how it is easier for the world have a common currency for trade," he says.
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