The IMF calls with the creation of a new world currency

The president of the Funds international currency, Dominique Strauss-Kahn, estimates that in a globalized world, “it there more place for a national solution”. He also invited China to revalue Yuan.

If it wishes more monetary stability, the world cannot any more be dependant on only one currency of international reserve. It is what with declared Tuesday the managing director of the Fund international currency (FMI), Dominique Strauss-Kahn, during a conference. “In a globalized world, it there more place for a national solution” have-you it declared, allusion made to the American dollar, whose statute of currency refuge is criticized more and more. According to the IMF, a new currency of reserve could as a result be based on the system of the special drawing rights (DTS), the Unit of Account used by the international institution. A position which at the beginning of year the director of the central bank of China had already defended, which did not wish any more to see the dollar continuing to remain indefinitely the single currency of world reserve.

At the end of a two days visit in Beijing during which it in particular met persons in charge of the Central bank and ministry for the Trade, Dominique Strauss-Kahn also invited China to revalue her national currency. “The renminbi (yuan) is underestimated. A revaluation is in the interest of the worldwide economy but as of China”, he said, adding as “earliest will be best”. “That will take time because it is not something which one can modify from one day to another”, however recognized the French former minister. This rebalancing is however necessary, because China currently has “a commercial advantage but she also suffers from prices which are false, likely to lead to bad decisions as regards long-term investments”.

China is the subject since years of pressures to let its currency appreciate itself, in particular on the part of its large business partners, the United States and European Union. The latter estimate as a result that weak Yuan favors Chinese exports.