IMF chief proposes new reserve currency

Feb. 26, 2010 at 11:50 PM

WASHINGTON, Feb. 26 (UPI) -- International Monetary Fund Managing Director Dominique Strauss-Kahn said Friday a new reserve currency should be explored as an alternative to the U.S. dollar.

Strauss-Kahn, answering questions after a speech at IMF headquarters in Washington, said a new reserve currency would be "intellectually healthy to explore," The New York Times reported.

The IMF chief declared the need for a "renewed vision" of the world monetary body, which was formed in the aftermath of the 1994 Bretton Woods Agreements in New Hampshire, saying the organization must find better ways to uncover financial crises before risks metastasize throughout the global financial system.

"As long as the United States maintains sound macroeconomic policies and deep, liquid, and open financial markets, the dollar will continue to be the major reserve currency," the Treasury Department said in an October 2009 report.

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