Not 'Realistic' To Abandon US Dollar

By Ben Blanchard  |   2009-6-10  |     NEWSPAPER EDITION

CHINA, the world's largest holder of foreign exchange reserves, has no intention of abandoning the US dollar, Vice Foreign Minister He Yafei said.

He spoke at a news briefing yesterday on President Hu Jintao's trip to Russia, where he will attend an inaugural summit of the BRIC countries - Brazil, Russia, India and China - in Yekaterinburg on June 16.

Russian President Dmitry Medvedev has said the meeting would discuss the search for alternatives to the dollar as the world's principal reserve currency.

But, asked about the issue, He said: "Nobody is talking about dumping the dollar. I don't think this is realistic."

Asked if the summit would broach the idea of a supernational currency, He said: "At the moment there are some experts and academics who have raised this issue and are discussing it at that level."