Monday, July 06, 2009

India joins Russia and China questioning U.S. Dollar dominance

Now India has joined Russia and China in questioning U.S. dollar dominance. Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars.

"The major part of Indian reserves is in dollars--that is something that's a problem for us," Tendulkar, chairman of the Prime Minister's Economic Advisory Council, said in an interview as he prepared to join leaders from the Group of Eight (G-8) industrialized nations at meetings to tackle the global economy.

Tendulkar said that big dollar holders face a "prisoner's dilemma" in terms of managing their holdings.

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