BEIJING — China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week’s London summit on the financial crisis.
The surprise proposal by Beijing’s central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. Both the United States and the European Union brushed off the idea.
Zhou Xiaochuan, governor of the People’s Bank of China, recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund. Zhou did not mention the dollar by name. But the essay was published in Chinese and English, making clear it was meant for a foreign audience.
