Friday, February 26, 2010

IMF Calls for New Reserve Currency

The head of the International Monetary Fund (IMF) says there is a need for a new global reserve currency that does not depend on the U.S. dollar, and the policies, practices, conditions and leadership of a dominant country - in this case, that would be the United States.

New Reserve Currency?

There is no doubt that the continued murmurs about dropping the USD, is a growing grumble, and is intended to ready for a new day, and a new world order.  This from a professor at the New York University's Stern business school:
Known as "Dr Doom" for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st century because it has a large current account surplus, focused government and few of the economic worries the US faces.
Wall Street Journal February 3, 2010:
Prof. Joseph Stiglitz of Columbia University and a former World Bank chief economist, wants to see an "orderly transition" from a dollar-based global economy. "It is peculiar that we still have the dollar system when we are so globalized," he says. "[There is a] need for a new global reserve system to replace the dollar-based system."...
Not only has the value of the dollar fallen, but with official interest rates close to zero and yields on bonds at record lows, the dollar has started looking like an unappealing asset to hold.... 
Figures from the International Monetary Fund show that the share of foreign-exchange reserves held in dollars by central banks resumed a downward trend in the third quarter of last year. The dollar's share has declined to 61.6% from 71.6% in the first quarter of 2002, when the currency hit its peak....
Always lusting for a one world order, the United Nations says the dollar should be replaced with a global currency, proposing the biggest overhaul of the world's monetary system since WWII.

Others talking about the demise of the dollar:
Left Coast Rebel

Related and Background:
Foreign Bank Bailout: War Funding Bill Funds IMF
Oil for Basket of Currency: Falling Dollar Road to One World Currency?
Congress Rebukes Obama -Wants Report on IMF Activities: Presidential Signings Rebuked 
Gulf Arab States: Oil Producers Deny Dollar Dump

©2007-2012copyrightMaggie M. Thornton