Watch part two

Days before the G20 financial summit in London, Zhou Xiaochuan, the governor of the People's Bank of China, called for a new currency to eventually replace the US dollar.

The dollar, which was made the reserve currency after World War II, has come under increased pressure of late. 

Barak Obama, the US president, cast doubt upon calls by senior Chinese authorities for the creation of a new global currency to replace the dollar as the standard bearer for the world.

He said that global investors still look at the dollar as a safe investment.

But Zhou wants a different currency, perhaps run by the International Monetary Fund, to replace the US currency - an indication of growing dissatisfaction with the US.

He said he wanted to "create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run."

The statement came just a few days after Wen Jiabao, China's premier, said that he was concerned with the amount of money that China had lend to the US.

"Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried," he said.

China is the largest creditor to the US - the top holder of US Treasury bonds worth $739.6 billion as of January, according to US figures. It is also the world's largest holder of dollars as a reserve currency, with more than $1 trillion.

Will China succeed in replacing the dollar with another currency as the world's reserve? Will such a move benefit world economies? And will others follow China?

This episode of Inside Story aired on Thursday, March 26, 2009.