Tuesday, 15 Feb 2011 07:04 AM
France, as current head of the Group of 20 countries, will
help the transition to a global financial system based on
"several international currencies," French Economy Minister
Christine Lagarde said on Monday.
Lagarde, speaking ahead of a G-20 finance ministers meeting here
on Friday and Saturday, said the world had to move on from the
"non-monetary system" it now has to one "based on several
international currencies."
Accordingly, France wants to see less need for countries,
especially the emerging economies, to accumulate huge foreign
reserves, she said.
At the same time, international capital flows should be better
regulated and the role of the Special Drawing Rights issued by
the International Monetary Fund should be reinforced by the
inclusion of China's yuan in the system.
China, whose booming economy now ranks second only to the United
States in size after overtaking Japan, has accumulated massive
forex reserves of more than $2.5 trillion on the back of its
sustained trade surpluses and foreign fund inflows.
Washington says the build-up reflects an unfair undervaluation
of the yuan, a charge Beijing rejects.
France has previously said it wanted to see the global financial
system reduce its reliance on the dollar for a more broad-based
arrangement.
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