IMF chief: Dollar status in doubt if debt crisis persists

From Raw Story: http://www.rawstory.com/rs/2011/07/28/imf-chief-dollar-status-in-doubt-if-debt-crisis-persists/

By Agence France-Presse

Thursday, July 28th, 2011

WASHINGTON — IMF chief Christine Lagarde warned Thursday that failure to resolve the US debt crisis would likely raise "doubts" about the dollar's status as the world's prime reserve currency.

"It would probably entail a decline of the dollar relative to other currencies, and probably doubts in the mind of those people who reserve currencies as to whether the dollar is effectively the ultimate and prime currency of reserve," she told PBS television in an interview.

Her comments, excerpts of which were released by the broadcaster, came as Republicans and Democrats remained locked in a showdown over rival plans to raise the US debt ceiling and stave off a looming default.

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