China seeking broader global currency system : reports

Days ahead of president Hu Jintao's scheduled departure for G8 summit, China has said it is seeking a broader global monetary system. The announcement has sparked speculation and analysts say the issue of a new reserve currency is likely to be raised during the G8 summit.

Vice foreign minister He Yafei told reporters during a briefing on Hu's trip to the Group of Eight summit that China hoped that in future the international monetary system would be diversified. The Group of Eight meeting will be held in Italy from 8 to 10 July.

He added that if the issue (of a new global reserve currency) were to be raised by leaders during the meeting, it would only be natural as all countries were discussing how to respond to the financial crisis and the issue was under the framework.

Earlier in March, China had called for dumping the dollar as the international reserve currency to stabilise the world monetary climate. The suggestion, which the International Monetary Fund had later termed legitimate had created a stir in the international community.

But He, who is in charge of China's G8 preparation said at a news briefing that he had not heard of any request for a discussion about reserve currencies at the meetings in Italy from China.

According to media reports China had asked for a debate on proposals for a new global reserve currency in Italy and the issue could figure in the summit statement.
But He indicated that Beijing expected the issue to figure at the three-day G8 meeting starting next Wednesday.