World Bank warning on status of the dollar

28 September 2009

World Bank president Robert Zoellick has given the United States a warning over the future of the dollar as the world's key reserve currency.

He said: "The United States would be mistaken to take for granted the dollar's place as the world’s predominant reserve currency.

"Looking forward, there will increasingly be other options to the dollar."

Mr Zoellick will deliver the warning as part of a speech at the John Hopkins University in Washington DC later today (Monday September 28th 2009).

In the speech, he will say that the huge economic changes of the last two decades, which started with the breakdown of Communist economies in the Soviet Union and across Eastern Europe, have seen the emergence of India and China as economic powers thanks to the reforms they made.

Mr Zoellick, who replaced Paul Wolfowitz as World Bank president in 2007, will also call on the G-20 to work as a steering group for international economic co-operation.

He will suggest that countries with emerging economies should be treated as responsible stakeholders by the G-20, while recognizing that many developing nations face the challenge of bringing millions of their citizens out of poverty.

By Claire Archer

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