But that country’s fx reserves are still anchored on U.S. dollar.

Other comments:

• Dollar’s status as main reserve currency will not change near-term
• Will further improve yuan’s managed float

The comments will have  helped undermine the USD this morning.

Other comments:

• No other currency than dollar can play role of world reserve currency
• Hard for G20 to commit to growth targets in rebalancing world economy
• Will take time for major economies to raise rates but need coordination when they do
• Japan, world unlikely to suffer double dip 

The dollar’s status as the world’s main reserve currency could be eroded by economic woes, but other currencies remain far from being able to challenge its dominance, China’s top official newspaper says.

The People’s Daily echoes recent statements from the country’s officials that a weakened dollar could cut value of reserves, but voiced scepticism about the euro, saying it could be impeded by problems in the EU including high unemployment and disparate economic cycles among member countries which could undermine unified fiscal and monetary policies.

The paper’s commentary says some observers believe a relative decline in the reserve status  of the dollar is unavoidable given the United States lagging productivity growth relative to emerging countries and it’s current account and fiscal deficits, but it also stressed that it will take a long time before any other currency stands a chance of displacing the US currency.

The world either needs more reserve currencies or global rules on economic behaviour to ensure future financial stability, according to Putin.

The Russian PM speaking at an economic forum on the Black Sea said “If the emission centre in Washington is printing money for the whole world and no one is controlling that, it poses a problem” adding “if there is a global agreement on common behaviour rules or several reserve currencies…there will be no danger for the US economy.”

Regarding oil prices, Putin said that countries need to ensure order in the trade of oil futures and other derivatives.

The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world’s monetary system since the Second World War. Edmund Conway in The Telegraph.

German Finance Minister Steinbrueck has told Manager magazine, that he expects the dollar to remain the world’s leading currency after the global crisis, but for the yuan and the euro to grow in importance.

Steinbrueck says there’s no credit crunch yet in Germany, but that situation is being watched carefully.

Russia’s central bank deputy chairman Gennady Melikyan sees no alternative to the dollar or euro in the near future as leading reserve currencies, telling reporters “the euro and dollar will dominate for now.”

The comments have given the USD and EUR a lift against the other majors, cable presently down at 1.6345 (jobs data impacting as well) while EUR/JPY and EUR/GBP are up at session highs, 131.68 and .8597 respectively.

Roger Bootle at The Telegraph.

Brazilian President Lula da Silva, in a French newspaper interview, says the US dollar will be important for decades. He feels it is not easy to replace the dollar in world trade, but that it is possible over time.

The official feels world dependance on a single currency is not a good thing and alternatives to the dollar are needed,  but the debate will take a very long time.

You live, you learn. I didn’t know who the Brazilian President was and had to do a google search for Lula. Found a picture of him; what a kindly, friendly, looking soul.

The dollar should remain the main reserve currency for the time being as the world has no alternative to replace it, says Hiroshi Watanabe, president and chief executive of the state-backed Japan Bank for International Cooperation.

Mr Watanabe also feels China isn’t serious about changing the global currency system in the near-term.

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