HONG KONG — A growing feeling that the dollar has had its day is still being spoiled by the lack of a ready alternative and by inertia and lack of global political vision or leadership. China's unwillingness to assume international responsibilities is another important factor.
Chinese President Hu Jintao signaled his wish for change on the eve of his state visit to Washington in January when he declared bluntly in answering written questions that "the current international currency system is a product of the past."
China is sitting on a huge pile of mostly dollar-denominated assets liable to huge losses with every quantitative easing of the dollar or rise in China's currency. For his own cause, Hu and colleagues are only prepared to contemplate slow moves to "internationalize" China's renminbi. Hu also said that "making the renminbi an international currency will be a fairly long process."