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Geithner says 'quite open' to China's SDR proposal

Published 03/25/2009, 10:13 AM
Updated 03/25/2009, 10:16 AM

NEW YORK, March 25 (Reuters) - U.S. Treasury Secretary Timothy Geithner on Wednesday said he is "quite open" to China's suggestion of moving toward a currency system linked to the International Monetary Fund's Strategic Drawing Rights.

Zhou Xiaochuan, China's central bank governor, earlier this month said the world should consider the SDR, a basket of dollars, euros, sterling and yen, as a super-sovereign reserve currency.

Geithner, responding to a question, said he hadn't read Zhou's proposal but added, "as I understand it, it's a proposal designed to increase the use of the IMF's Special Drawing Rights. I am actually quite open to that suggestion."

However, he said it should be viewed as an "evolutionary building on the current architecture rather than moving us to a global monetary union." (Reporting by Pedro Nicolaci da Costa; Editing by Theodore d'Afflisio)

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