China’s president Hu Jintao has raised questions on the role of the US dollar in the global monetary system on the eve of a state visit to Washington, saying “the current international currency system is the product of the past”.
Mr Hu, who arrives in Washington on Tuesday, also delivered a thinly veiled critique of US monetary policy, underlining China’s concern about the impact on its own economy of recent stimulus measures taken by the US Federal Reserve.
“The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the US dollar should be kept at a reasonable and stable level,” said Mr Hu.
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