It is understandable that China wants some reform of the International Monetary System and doesn’t want to see its massive and predominantly US foreign currency reserves to be inflated away and turned into toy paper money. (smile) But the chance is low that there is a politically acceptable solution to the world (in particular US). We have Euro but my gut feeling tells me we won’t have Woro anytime soon. (Update: In a news conference tonight, President Obama rejected the idea of a world currency posted in a question by a reporter.)
Here is a speech by Zhou Xiaochuan (周小川), Chairman, Monetary Policy Committee of the People’s Bank of China, in both Chinese and translated into English. Mr. Zhou wants to be listened to but will he? We will find out soon when G20 meets.