IMF Economists Urge Diminished World Role for Dollar, FT Reports

By Alan Purkiss

Nov. 12 (Bloomberg) -- World demand for dollar reserves should be reduced and alternative reserve assets should be explored, according to a group of economists at the International Monetary Fund, the Financial Times said.

A report published by the economists in their individual capacities says the global financial and economic crisis has underlined long-standing concern about the dollar’s role, given that the crisis had its origin in the U.S. financial system, the newspaper said.

Alternatives to the dollar as the main reserve asset might include a move toward sharing the leading role with a few other currencies such as the euro and perhaps China’s renminbi, the FT cited the economists as saying.