China Continues Its Criticism Of The U.S. Dollar

China Criticises Dollar -- The Telegraph

Dai Bingguo, who is standing in for the Chinese president Hu Jintao at the G8 meetings, raised questions over the dominant role of the dollar as the world's reserve currency.

The discussion, which took place between the leaders of five emerging economies and the G8 industrialised nations, including Barack Obama, caused concern among western leaders.

"We should have a better system for reserve currency issuance and regulation, so that we can maintain relative stability of major reserve currencies exchange rates and promote a diversified and rational international reserve currency system,” said Mr Dai, according to the Chinese foreign ministry.

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Update: China airs FX view but no big stir at G8 summit -- Reuters

Update #2: China’s Currency Reserves May Top $2 Trillion for First Time -- Bloomberg

My Comment: The Chinese clearly want to run away from the U.S. greenback. I cannot blame them .... even I am not happy getting my Google Adsense checks in U.S. Dollars (it is my coffee fund) .... the Canadian Dollar has appreciated over 30% in the past two years (I live in Canada), and I have seen the difference.

As long as Japan, Europe, and Saudis continue to support the U.S. Dollar, the Chinese can complain all that they want .... but it will not change anything.