UPDATE 1-US cannot be complacent about dollar - World Bank

Wed Nov 11, 2009 4:02am GMT
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* Says Chinese yuan can be alternative in 10-15 years

* Dollar's role "relatively secure" for now

* Says no rush to roll back stimulus measures

* Warns of asset bubbles in some Asian countries

By Kevin Yao and Kevin Lim

SINGAPORE, Nov 11 (Reuters) - World Bank President Robert Zoellick said on Wednesday that the dollar's role as a reserve currency is intact, but the United States cannot take it for granted and needs to tackle its huge fiscal deficit.

There would be limited options for central banks to diversify their reserves away from the dollar in the near-term, but the Chinese yuan would provide an alternative in the next decade or so, he said.

"I think the dollar's role as the reserve currency for some time is relatively secure," he said at a World Bank conference in Singapore.

But he warned that the United States could not take the dollar's dominant role in the world economy for granted and should take responsible approaches in setting policies.  Continued...

 
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