While the G20 is meeting in Washington, the International Finance Forum is currently underway in Beijing. As noted below, Chinese economists have stated that "the dollar-centered international monetary system must be reformed."

Also, Iran has just announced a major gold purchase.

Regards - VHF

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UPDATE: China CIC: G7 Becoming Irrelevant, New Order Needed

November 15, 2008 7:26 am

BEIJING (Dow Jones)--The Group of Seven industrialized nations isn't working and a wider array of global players, that should include China, is needed in a new economic world order as the global financial crisis has shown, said a senior executive with China's $200 billion sovereign wealth fund Saturday.

"We need a brave new international economic and financial system," said Jin Liqun, chairman of the supervisory board of China Investment Corp. "I think G7 is quickly losing its relevance. It's absurd China and other emerging markets are out of the picture."

Jin, who was making his comments at the International Finance Forum in the Chinese capital discussing the global financial crisis, said any new system should be "fair, just, inclusive and effectual."

He said that while it remains uncertain what a new system will look like, what was certain was that cooperation and coordination in the international community will be further strengthened.

Jin didn't say whether CIC should play a role in reform of the international financial system.

Jin said that the prospects for the global economy don't look good for the next two to three years. The overall recovery process from the economic slowdown and recession will also be slow, said Jin, who was once one of China's vice finance minister and a vice president at the Asian Development Bank.

Another former Chinese government official, Li Ruogu, who was speaking at the same forum, said that the dollar-centered international monetary system must be reformed.

Li was once a vice governor with the People's Bank of China, the country's central bank, and currently is the head of the Export-Import Bank of China, one of the country's three policy lenders.

Li said China will certainly be an active participant in the reform process if it is initiated, but that the country is unable to lead the reform.

"I think China at this moment really does not have the strength to take the lead for the international monetary system reform," said Li.

The forum, which was partly sponsored by China's financial regulators and the U.N., came as world leaders of 20 developed and emerging nations were gathering in Washington to discuss the global crisis and the future of the international financial system, including Chinese President Hu Jintao, People's Bank of China Governor Zhou Xiaochuan and Finance Minister Xie Xuren.

China's plentiful liquidity, vast foreign exchange reserves and its role as a creditor nation have put focus on Beijing to do more to help resolve the international crisis. But Beijing has stressed that keeping its own affairs in order, including the launch a week ago of a 4 trillion yuan ($586 billion) stimulus package to boost the domestic economy, is the most important contribution it can make to resolving the global woes.

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Iran converts some foreign reserves to gold

November 15, 2008 10:08 am

(AP:TEHRAN, Iran) Iranian newspapers are quoting a top adviser to President Mahmoud Ahmadinejad as saying the country has converted some of its foreign currency reserves into gold.

The papers published Saturday did not say how much of Iran's estimated $120 billion in reserves were converted into gold. Iranian officials could not immediately be reached for comment.

The daily Jahan-e-Eghtesad, or Economy World, quoted presidential adviser Mojtaba Hashemi Samareh as saying Ahmadinejad ordered the change.

The decision comes after a dramatic fall in oil prices recently triggered by a global financial crisis. About 80 percent of Iran's foreign currency revenue comes from oil exports.