* Sees stability based on greenback in global crisis
* Expects forex discussion at G8 meeting
* Sees room for more C$ appreciation
* Forecasts higher jobless rates in Canada, U.S. (Updates throughout with comment, details)
OTTAWA, July 3 (Reuters) - The U.S. dollar as the global reserve currency of choice has been a stabilizing force during the current financial crisis, Canada said on Friday, downplaying calls to debate the greenback's dominant status.
Canadian Finance Minister Jim Flaherty told reporters he did not know whether the U.S. dollar's role as the global reserve currency would be included in the final communique of a meeting between the Group of Eight leaders and a heads of emerging nations in Italy next week.
"It's an issue that we have not addressed other than to say that, in the midst of what is still a significant global recession, it's important that we aim for stability, and stability has been based on the U.S. dollar as the global currency," Flaherty said via teleconference from Chile.
China has asked for a debate on a new global reserve currency by the G8 and five emerging economies, G8 sources have told Reuters. News of the Chinese request pushed the U.S. dollar down to a three-week low on Wednesday. [ID:nL1293071]
Flaherty said he expected the G8 to have a more general discussion on foreign exchange at its summit.
Commenting on Canada's currency, he said there was room for the Canadian dollar to appreciate further as part of the global realignment of currencies that many believe should include a rise in the Chinese yuan and a weaker U.S. dollar.
"Yes, of course it can," he said when asked if there was scope for a strengthening of the Canadian dollar.
"A lot of people view the Canadian dollar in line with energy prices, with oil prices for example, so some appreciation there is likely to have some upward effect on the Canadian dollar vis a vis the U.S. dollar," he said.
"Our main concern is not to see non-market related fluctuations in the currency."
Flaherty also gave his backing to the Lecce Framework of rules for global finance, which the G8 finance ministers have adopted and next week's summit will now review.
Some observers have criticized it as being too vague and voluntary, but he said: "I think it is a statement of principle that is useful."
He predicted jobless rates in Canada and the United States would continue to rise but said he had not seen any signs in Canada of wages contracting.
"The unemployment rate in the United States is well over 9 percent now and it's likely to go higher into 2010. We expect some continuing growth in unemployment in Canada as well. Recovery from the recession will happen before the reduction in unemployment," Flaherty said.
Flaherty was speaking from Chile, where is is attending a meeting of finance ministers of the Americas, along with officials from the World Bank, Inter-American Development Bank and the International Monetary Fund. (Reporting by Randall Palmer, Louise Egan and Ka Yan Ng; editing by Rob Wilson)