A Russian-Chinese Axis at the G-20?

Ted Bromund / March 20, 2009

Earlier this week, Russia issued a radical call for the eventual replacement of the dollar as an international reserve currency, and its replacement by a new, fiat currency to be created by a global regulator. The prospects for agreement on this at the G-20 summit in April, to put it politely, did not look promising.

But now another voice has been heard from: China. And their reaction has been surprising. With their vast holdings in dollar-denominated securities, you would think they would oppose anything that would weaken the dollar. But Reuters is now reporting:

China and other emerging nations back Russia’s call for a discussion on how to replace the dollar as the world’s primary reserve currency

And China’s ideas are slightly clearer than Russia’s vague proposal. The Chinese envisage: (more…)