Indonesia, Malaysia, Thailand Support Call for Global Currency

[Coventina]

Source: Bloomberg

March 27 (Bloomberg) -- China’s call for a global reserve currency to take the place of the dollar has won the support of central bank chiefs in Indonesia, Malaysia and Thailand, who argue it would help curb volatility and foster trade.

“We need a currency that is stable by volume and value so that world trade and investment can be more stable,” Bank Indonesia Governor Boediono told reporters in Jakarta today. “Trade transactions using one currency that’s dependent on the condition of a single country’s economy is dangerous.”

China’s central bank Governor Zhou Xiaochuan this week urged the IMF to expand the use of Special Drawing Rights, or SDRs, and move toward a “super-sovereign reserve currency.” Bank Negara Malaysia Governor Zeti Akhtar Aziz two days ago said it’s “a viable proposal that should be considered,” while Bank of Thailand Governor Tarisa Watanagase today said it may benefit developing nations to have an alternative to the dollar.

“It does show that the topic has come up and there seems to be some support here in Asia for it,” said Thomas Harr, a senior currency strategist at Standard Chartered Plc in Singapore. “Asian central banks have been diversifying out of U.S. dollars for some time and they’re concerned about the sustainability of the U.S. financial system.”



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aAX46LfGPVf4&refer=home

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Another of Bush's legacies....