Update: President Obama rejected the claims of replacing the dollar as the global reserve currency. Obama said that the United States is considered “the strongest economy in the world with the most stable political system,” and described the dollar as “extraordinarily strong”.

Zhou Xiaochuan, the governor of the Chinese Central Bank, is calling to replace the dollar as the main global reserve currency, citing the dangers of the current economic crisis on heavily relying on one currency essentially controlled by the west.

Zhou said, “A super-sovereign reserve currency managed by a global institution could be used to both create and control global liquidity.” Read the full story

Europe’s four largest economies - Germany, Britain, Italy, and France - have just wrapped up an emergency meeting in Berlin to deal with the global economic crisis that is especially hurting eastern-northern European countries. They have collectively agreed that the IMF emergency fund should be doubled, if not more than doubled to at least $500 billion. The move comes to help counter a possible long lasting worldwide depression. British PM Gordon Brown is also preparing to inject the UK’s Northern Rock bank with £14 billion in capital to encourage lending and to help revive the mortgage market in the UK.