Just weeks before the Group of 20 meeting in London, where leaders of industrial and developing nations will meet, China has proposed revolutionising a key part of the global financial system by replacing the dollar as the world's global reserve currency with a super-sovereign reserve currency. Zhou Xiaochuan, governor of the People's Bank of China, published the proposal on the bank's website in both Chinese and English this week.
Zhou is building on an idea tabled earlier this month by a group of countries including China, India and Russia.
Without explicitly referring to the dollar, he talks about the problems inherent in using a national currency as the global reserve -- the main...
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