World Bank urges US to tackle deficit

The World Bank President, Robert Zoellick, has warned the US dollar may lose its role as a reserve currency if the Washington fails to tackle its huge fiscal deficit. He made the comments at the APEC summit in Singapore on Wednesday.

He also noted China had been moving cautiously in making the yuan convertible on the capital account, but the country's rapid economic transformation would help enhance the yuan's global status. He said the yuan will be internationalized and provide an alternative to the dollar over the next 10 to 15 years.