The dollar fell briefly by 1.3% against the euro on Wednesday after US Treasury secretary Tim Geithner suggested the US was open to exploring a Chinese proposal to reduce reliance on the dollar as the world’s reserve currency. Geithner told the Council for Foreign Relations that he had not studied the proposal by Zhou Xiaochuan, China’s central bank governor, for greater use of special drawing rights – a synthetic currency maintained by the IMF – in global reserves, but added: “We are quite open to that.”

This entry was posted by Gwen Robinson on Thursday, March 26th, 2009 at 5:03 and is filed under Capital markets, People. Tagged with Tim Geithner. Edit this entry.