U.S. Treasury Secretary, Timothy Geithner, said on Wednesday that he does not believe that the American dollar will lose its position as the reference currency in the international monetary system over the next ten years, informs AFP.
“I don’t think that there is a realistic prospect for a significant change in the international monetary system in the next decade”, Geithner said at a conference in Washington.
Referring to the discussions currently ongoing between China, Russia, and Brazil on creating an alternative to the dollar, Geithner did not exclude the occurrence of changes, but in the long term”. As these economies become stronger and if they really open their financial systems and eliminate checks on movement of capital, then it is possible that in a long run we’ll see a significant change”, said the U.S. Treasury Secretary.
According to Timothy Geithner, the crucial issue for the U.S. is to maintain the investors’ confidence in the American dollar. In this respect, Geithner said that the deficit reduction is crucial to ensure that U.S. can invest in areas that guarantee future growth, such as education and infrastructure.