Friday, 3 July 2009

IMF Kato: Establishing New International Reserve Currency Takes Time

IMF Kato: Establishing New International Reserve Currency Takes Time

BEIJING -(Dow Jones)- International Monetary Fund Deputy Managing Director Takatoshi Kato said Friday establishing a a new international reserve currency is a long-term process that is market driven.

Kato repeated the IMF "very much appreciates" China's willingness to buy as much as US$50 billion of IMF bonds. He added he hopes these purchases will help Beijing manage its foreign-exchange reserves.

The IMF this week agreed to issue bonds denominated in Special Drawing Rights to bolster its finances. Apart from China, Russia and Brazil have also said they are willing to buy the IMF's bonds. Kato was speaking on the sidelines of a forum in Beijing.

-Liu Li contributed to this story, Dow Jones Newswires; 8610 6588 5848; li.liu@dowjones.com

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(END) Dow Jones Newswires

July 03, 2009 01:00 ET (05:00 GMT)


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