China tables debate on replacing dollar

China has asked for world leaders meeting in Italy at next week’s G8 summit to debate proposals for a new global reserve currency, according to reports.

By Edmund Conway and James Quinn
Published: 6:56PM BST 01 Jul 2009

In what may be seen as a watershed moment, Chinese officials, who have unofficially raised the issue recently, have now asked for it to be brought to the diplomatic table.

The request means that the Chinese proposals to introduce the IMF’s standard drawing rights as a possible replacement for the dollar could form part of the concluding communiqué.

According to Reuters, the request was made during preparatory talks ahead of the summit in L’Aquila.

The request came as new monthly job loss figures in the US stayed at exceptionally high levels. The latest ADP payroll survey showed that the American private sector shed 473,000 jobs last month, considerably more than the 400,000 economists had been forecasting.

Although the average job loss figure has fallen from 691,000 for the first three months of this year to 492,000 in the most recent three months, there are fears that the US employment market may again be deteriorating.

However the Institute of Supply Management’s manufacturing PMI index rose by 2 to a reading of 44.8.

http://www.telegraph.co.uk/finance/econ ... ollar.html