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Vice FM: US should maintain stability of dollar

(Xinhua)
Updated: 2009-07-06 10:24

ROME: Chinese Vice Foreign Minister He Yafei said here on Sunday that the United States has the responsibility to maintain the stability of US dollar, adding that dollar would still be the most important major international reserve currency in years to come.

He, who was accompanying Chinese President Hu Jintao to visit Italy and attend the G8 Summit, said the US dollar is the major reserve currency in the settlement of the international trade, and the US government has the responsibility to maintain the stability of the currency.

Full coverage:   G8+5 Summit Related readings:  China won't press for new global currency at G8  Hu leaves for leaders' dialogue between G8, emerging economies  China reassures on dollar debate before G8  MEF to try to bridge differences before G8  Quake shakes G8 summit venue in Italy

Speaking at a pre-G8 summit briefing, He said many countries had called for the stability of the US dollar and that "that's natural" for China to voice concern of "safety of assets in the United States."

He said China appreciates the efforts of the US to maintain the stability of dollar.

"We appreciate US in that direction," he told the press.

In recent months, Russian President Dmitry Medvedev has repeatedly questioned dollar's future as a global reserve currency, calling for the creation of a supranational reserve currency.

Medvedev's aide Sergei Prikhodko is reportedly stating in Moscow at the weekend that "we will resume" talks on the supranational currency proposal at the G8.

However, the Chinese vice minister said the US dollar is still "the most important major international reserve currency of the day, and for years to come."

"That's the reality," he said.

He said creation of supranational reserve currency has been discussed "among academic circles."

"It (creation of supranational reserve currency) is not the position of the Chinese government," he added.