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RPT-UPDATE 1-Australia's Rudd: U.S. dollar reserve status safe
March 24, 2009 / 1:20 AM / 8 years ago

RPT-UPDATE 1-Australia's Rudd: U.S. dollar reserve status safe

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WASHINGTON, March 23 (Reuters) - Australian Prime Minister Kevin Rudd said on Monday the U.S. dollar’s position as a key reserve currency was not at risk, notwithstanding a call from China for an overhaul of the global monetary system.

“The dollar’s position .... remains unchallenged,” Rudd said in response to a question at a forum sponsored by the Wall Street Journal.

Earlier on Monday, the governor of China’s Peoples Bank of China, Zhou Xiaochuan, had suggested the International Monetary Fund’s Special Drawing Right could become a super-sovereign reserve currency.

The SDR is an international reserve asset created by the IMF in 1969. Zhou said in remarks published on the central bank’s Website that it has the potential to act as a super-sovereign reserve currency.

Zhou’s comments follow remarks by Russia last week that it would put forward a proposal at the Group of 20 summit on April 2 for the creation of a new reserve currency.

Russia said it had broad support among fellow emerging market economies, including China, India, Brazil, South Korea and South Africa, for such a move.

The push underscores growing concerns by emerging economic powers -- among the largest dollar dollars in the world thanks to strong export revenue -- about the long-term value of the dollar.

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