Ben Smith,Politico
Geithner "open"to China's idea of abandoning the dollar
Geithner,at the Council on Foreign Relations,said the U.S. is “open”to a headline-grabbing proposal by the governor of the China’s central bank,which was widely reported as being a call for a new global currency to replace the dollar,but which Geithner described as more modest and “evolutionary.”
“I haven’t read the governor’s proposal. He’s a very thoughtful,very careful distinguished central banker. I generally find him sensible on every issue,”Geithner said,saying that however his interpretation of the proposal was to increase the use of International Monetary Fund’s special drawing rights —shares in the body held by its members —not creating a new currency in the literal sense.
“We’re actually quite open to that suggestion – you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union,”he said.