"I don't believe that there's a need for a global currency," said President Obama Tuesday night during his prime-time press conference. Well, the Chinese sure do. Zhou Xiaochuan, head of China's central bank, called for the replacement of the dollar in a text released Monday.
"The acceptance of credit-based national currencies as major international reserve currencies, as is the case in the current system, is a rare special case in history," said Zhou, as he tried to cover his stinging critique of the dollar in oblique language. "The crisis again calls for creative reform of the existing international monetary system towards an international reserve currency with a stable value, rule-based issuance and manageable supply, so as to achieve the objective of safeguarding global economic and financial stability."
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