Special Report: Global Financial
BEIJING, March 24 (Xinhua) -- Zhou Xiaochuan,
governor of China's central bank, has proposed to create a super-sovereign
reserve currency as part of reform in the international monetary system.
The desirable goal of the international monetary
system is to "create an international reserve currency that is disconnected from
individual nations and is able to remain stable in the long run, thus removing
the inherent deficiencies caused by using credit-based national currencies," he
Zhou said the Special Drawing Right (SDR) of the
International Monetary Fund (IMF) has the potential to act as a super-sovereign
reserve currency in a signed article posted on the website of the People's Bank
of China Monday.
The SDR is an international reserve asset created by
the IMF in1969.
The ongoing financial crisis is a testimony to the
inherent deficiencies of current monetary system of the world, he said.
He admitted the creation of a new reserve currency is
a long-term goal that requires foresight and courage from state leaders of
"In the short term, monitoring, evaluation, and early
warning mechanisms should be strengthened against risks of the current system on
condition that the international community, especially the IMF, acknowledges
such risks," he added.
Zhou's remarks came ahead of the G20 summit slated to
start in London on April 2, when leaders across the world and large
international organizations like the IMF are expected to discuss reforming of
the international monetary and financial system in light of the current crisis.
Last week, Russia announced a similar call for the
introduction of a super-national reserve currency as part of the country's
proposal to reform the international monetary and financial system at the
upcoming London summit.