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India is the latest country to cast doubt on the U.S. dollar as the major global currency. Suresh Tendulkar, a top government economist, has advised India to rely less on the dollar. He suggests buying a number of different currencies instead of just the greenback. He told reporters: “The major part of Indian reserves is in dollars. That is something that’s a problem for us.” India’s treasury holds over $260 billion in foreign currency reserves. A weaker dollar means those reserves could fall in value. This is especially possible with the pressure on the dollar from America’s weakening economy. This may not exactly be the final nail in the coffin for the dollar, but it seems to be losing ground on other currencies.

The dollar is not only under attack from India’s economists. China and Russia are also calling for a new international foreign-exchange reserves system. On July the 3rd, China’s former Vice Premier Zeng Peiyan called for a “system to maintain the stability of the major reserve currencies.” This suggests China no longer views the American dollar as the world’s sole reserve currency, and that the dollar is no longer the “system” at the heart of global financial markets. Russian President Dmitry Medvedev has repeatedly called for a system that has a mix of currencies. Japan appears to be the only economic power that is keeping faith with the dollar. This may change at a meeting of the G-8 in Italy on July 8-10.
http://www.breakingnewsenglish.com