Beijing Formalizes Call for New Reserve Currency

From The Wall Street Journal:

BEIJING -- China's central bank reiterated its call for the creation of a new international currency that could replace currencies such as the dollar in countries' official reserves.

In its annual report on financial stability, issued Friday, the People's Bank of China said the country will push reform of the international currency system to make it more diversified and reasonable. While it didn't specifically target the U.S. currency, it said it aims to reduce over-reliance on the current reserve currencies, of which the dollar is the biggest.

"To avoid the shortcomings of sovereign credit currencies acting as reserve currencies, we need to create an... international reserve currency that can maintain the long-term stability of its value," the PBOC said.

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My Comment: I guess the Chinese have given up on the U.S. greenback. I must confess that as a Canadian, I am (somewhat) relieved that I get paid in Canadian dollars .... even though I do know that if the U.S. economy goes into the toilet, so will the rest of the world.