People’s Bank of China Governor Zhou said there was no discussion of dollar stability with his US counterparts. Currencies were “touched upon”, he says but no full discussion of the subject in talks.

This would imply to me that much of the Chinese commentary on the need for a global reserve currency remains academic and focused on the long-term rather than a near-term concern that will change Chinese behavior in the near-term.

Zhou says he wants to see how China emerges from recession to determine the withdrawal of fiscal stimulus.

The fact that China was not pounding the table for a dollar-alternative has to be taken as a modest dollar positive as it does not upset the status quo.