diff --git a/ChangeLog b/ChangeLog
index 57af44bf47..54d8f96a28 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+2006-02-02  Derek Atkins  <derek@ihtfp.com>
+
+	* src/backend/file/io-gncxml-v2.c:
+	  Specify the output xml encoding as utf8.
+
 2006-02-01  Derek Atkins  <derek@ihtfp.com>
 
 	* src/business/business-core/gncInvoice.c:
diff --git a/src/backend/file/io-gncxml-v2.c b/src/backend/file/io-gncxml-v2.c
index 021b54da02..6a9f296d09 100644
--- a/src/backend/file/io-gncxml-v2.c
+++ b/src/backend/file/io-gncxml-v2.c
@@ -1102,7 +1102,7 @@ do_write_namespace_cb (const char *type, gpointer data_p, gpointer file_p)
 static void
 write_v2_header (FILE *out)
 {
-    fprintf(out, "<?xml version=\"1.0\"?>\n");
+    fprintf(out, "<?xml version=\"1.0\" encoding=\"utf-8\" ?>\n");
     fprintf(out, "<" GNC_V2_STRING);
     
     gnc_xml2_write_namespace_decl (out, "gnc");