Dollar Drops On Geithner's Comments
Heckava job, Timmy.
The dollar fell today after Treasury Secretary Timothy Geithner said the U.S. was “open” for a new global currency to replace the dollar.
Ben Smith posted the chart.
The Financial Times reported:
The dollar fell briefly on Wednesday after US Treasury secretary Tim Geithner said he was open to exploring a Chinese proposal to reduce reliance on the US dollar as the world’s reserve currency.
Mr Geithner told the Council for Foreign Relations that he had not studied the proposal by Chinese central bank governor Zhou Xiaochuan for greater use of Special Drawing Rights in international reserves, but said “we are quite open to that”.
Flopping Aces notes that just yesterday Treasury Secretary Geithner and Fed Reserve Chairman Bernanke both stated they would renounce any any proposal to move towards a global currency.
But, that was yesterday.
Glenn Reynolds has more on the Geithner gaffe.
UPDATE: Liberty Boy has video from yesterday of Geithner and Bernake “categorically” renouncing any move away from the dollar.