Saturday, November 15, 2008

Sarkozy Pushes for Abandonment of Dollar as World Reserve Currency

Sarkozy Pushes for Abandonment of Dollar as World Reserve Currency

http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_301988.html

The US dollar can no longer claim to be the sole world currency, French President Nicolas Sarkozy said on Thursday before a weekend summit on the global financial crisis that has its roots in the United States.

'I leave for Washington tomorrow to explain that the dollar, which at the end of World War II was the only world currency, can no longer claim to be the sold world currency,' Mr Sarkozy said.

'The world changes. We are in the 21st century and the French view is that we cannot continue into the 21st century with a system established in the 20th century,' he said.

'What was true in 1945 cannot still be true today. It is not a question of courage, it is a matter of good sense to look at things as they really are.'

Leaders from the Group of 20 developed and developing countries meet in Washington on Saturday to discuss the financial crisis that has now begun to cut growth sharply worldwide.

Created in 1999, the G20 countries account for 85 per cent of the world economy and about two-thirds of its population, with its leaders hoping to hammer on Saturday out a common approach and understanding of the crisis.

Mr Sarkozy, who also holds the rotating presidency of the European Union, has said several times that the Washington meeting should tackle currency issues, alongside efforts to improve the transparency and regulation of the financial markets.

Since the end of World War II, the US dollar has effectively been the world's reserve currency, used across the board and thereby giving the United States immense influence in the global economic system.

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