The United Nations added its voice to the growing call for an alternative to the dollar as the world’s sole reserve currency.
A United Nations panel has recommended a multilateral currency regime instead. China and Russia have made similar calls in past months.
Meanwhile, profits earned by the top 500 stocks traded in China are higher than the top 500 comparative U.S. stocks for the first time.
The U.N. conference on Trade and Development called for managed, rather than free-floating, currencies.
The U.N. report points out that the dollar’s current role absolves the U.S. of having to make necessary policy adjustments.
Thus, the dominance of the dollar as the main means of international payments also played an important role in the build-up of the global imbalances in the run-up to the financial crisis, the U.N. report stated
Nobel laureate economist Joseph Stiglitz argues that the dollar is indeed in trouble. Gold pushed through $1,000 an ounce over the U.S. holiday on a weaker dollar.
“Higher deficits spark market concerns over future inflation; concerns of inflation contribute to a weaker dollar; and both come together to undermine the greenback’s role as a reliable store of value around the world,” Stiglitz wrote in The Atlanta Journal Constitution.
Profits posted by the top 500 Chinese companies blew past that of their American counterparts for the first time in 2008, national news service Xinhua reports.
Net profits for the Chinese companies stood at $170.6 billion in 2008, well above the $98.9 billion for U.S. companies in the same period, according to the latest figures released by the China Enterprise Confederation (CEC) and China Enterprise Directors Association.
"Chinese enterprises enjoy relatively better policies and domestic market environment," CEC vice president Wang Jiming told the China Daily.
"But Chinese companies still lag behind the world's leading enterprises in resource allocation, innovation, international presence, business models and corporate culture."
The Industrial and Commercial Bank of China, the country's biggest lender, was the top Chinese money-earner, with a net profit of 111 billion yuan ($16.4 billion) in 2008.
Half of the top 10 profit-makers on the CEC list are financial companies, including banks and insurance companies.
"Compared with the U.S., where many IT companies have the strongest earning potential, the best money earners in China are still banks," said Xiong Xiaoge, vice-president of U.S. venture capital firm IDG.
China’s bank regulator said the country’s bank lending growth will be “more stable” in the second half of this year, Bloomberg reports.
“In the second half of this year, the loan growth will be more stable, and we’re monitoring this very closely,” Liu Mingkang, the head of the China Banking Regulatory Commission, told reporters after a recent meeting of global central bankers.
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