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Italy backs idea of new global currency

Published 04/30/2009, 09:27 AM
Updated 04/30/2009, 09:32 AM

ROME, April 30 (Reuters) - Italian Economy Minister Giulio Tremonti backed on Thursday the idea of a new global currency for international transactions, while keeping existing currencies for domestic use.

Tremonti applauded a proposal made last month by China's central bank governor Zhou Xiaochuan to create a new global reserve currency, but he said this should not mean the end of existing domestic units.

"The Chinese governor's idea is of extreme interest, an idea that evokes a single world currency," Tremonti said at a book presentation in Rome, adding that it may nonetheless be too complicated for ordinary citizens. "It would be better to have dual circulation, a global currency for international operations and local currencies for local operations," Tremonti said.

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