China's call for the replacement of the U.S Dollar

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Is this a good thing or a bad thing ?

LONDON (MarketWatch) - While foreign exchange is unlikely to be the subject of bold public pronouncements when the world's most powerful finance ministers and central bankers meet Friday in Washington, China's call for the replacement of the U.S. dollar as the world's leading reserve currency is likely to be a hot topic behind closed doors, currency strategists said.

Namely, foreign-exchange traders will be looking for any clues to discussions with Chinese officials as policy makers around the world attempt to piece together the implications of remarks by China central bank governor Zhou Xiauchuan in March for the eventual replacement of the U.S. dollar as the world's main currency with special drawing rights, the quasi-currency issued by the International Monetary fund.
The implication of such a policy would be a weaker dollar, as central banks move to diversify away from the world's largest reserve currency. And that's something that makes a number of policy makers, including officials from the 16-nation euro zone, nervous, analysts said.
The prospect of a substantially weaker dollar is unwelcome to policy makers in the euro zone, Japan or other countries worried about their own exports.

The main thrust of China's message is that it wants to diversify holdings of foreign exchange reserves in a way that more closely mimics the make-up of SDRs, said Simon Derrick, currency strategist at Bank of New York Mellon.
That means going from reserve holdings that stand at more than 60% dollars to around 44%. For the euro, holdings would rise to around 34% from 31%.
"You've got to read between the lines all the time," said Stephen Gallo, head of market analysis at Schneider Foreign Exchange. Over the long run, euro-zone officials are going to be more worried about the prospect of a higher euro rather than a weaker euro, he said.
"All these policy makers are worried about a snap back (to lower levels) by the dollar" as the United States ramps up borrowing, said Gallo.
With export powerhouse Germany and the rest of the euro-zone laid low by a collapse in global demand, a rise in the euro would be unwelcome. Jitters over such changes may explain European Central Bank President Jean-Claude Trichet's reiteration last weekend of his support for the U.S. government's "strong dollar policy," Derrick said.

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[asianseekerz]

if ever what currency should be replace in dollar!!!

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Originally Posted by asianseekerz

if ever what currency should be replace in dollar!!!

what ????

[seeandsee]

my balls!!!

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Originally Posted by seeandsee

my balls!!!

Did you use hair remover cream on your balls ??

[hjnet]

EURO all the way €€€