Bloomberg's Scarlet Fu reports on the Chinese central bank's renewed call for a new global reserve currency. The People's Bank of China said in its 2008 review released today that there is a need to create a currency that's "delinked" from sovereign nations. The central bank also said the International Monetary Fund should manage more of its members' foreign-exchange reserves.
The dollar declined the most against the euro in a month and dropped versus the yen after China repeated its call for a new global currency.
The Swiss franc declined against the euro and dollar this week as foreign-exchange analysts said the central bank sold its currency three times to support the economy. The greenback fell against most of its major counterparts after the People’s Bank of China said yesterday the International Monetary Fund should manage more of members’ foreign-exchange reserves.
“The dollar’s status as a reserve currency is being questioned,” said Benedikt Germanier, a foreign-exchange strategist in Stamford, Connecticut at UBS AG, the second- largest currency trader. “There are reasons to sell the dollar.”
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