In another indication of China’s increasing concerns about holding huge reserves, it has called for the creation of a new international currency reserve to replace the dollar.

China has said that the currency floated by the Internaional Monetory Fund might prove to be a lot more stable than the dollar. China has said that the global economic crisis has revealed the “inherent vulnerabilities and systemic risks in the existing international monetary system.”

While few analysts believe that the dollar will be replaced as the world’s dominant foreign exchange reserve anytime soon, the proposal shows China’s preparedness to assume a more influential role in the world. Russia also has recently made a similar proposal.