People’s Bank of China Governor Zhou Xiaochuan has called for the creation of a new currency to eventually replace the US dollar as the global standard, the Wall Street Journal reported. In an essay released on Monday amid preparations for a meeting of the Group of 20 industrial and developing nations in London next week, Zhou argued for reducing the dominance of the dollar, yen and euro in international finance in favor of a currency issued by the IMF. The currency would be based on an expanded version of special drawing rights (SDRs), a kind of currency used by the IMF in transactions with member nations. While it’s unlikely that Zhou’s plan would be implemented in the near future, experts say it could have “significant implications.” Chinese officials have become more openly critical of China’s US dollar investments. Earlier in March, Premier Wen Jiabao said that China was “concerned about the safety” of its US dollar assets.
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