China pushes for new global moneySubmitted by Ian56 on Thu, 10/04/2012 - 09:24
This latest information is part of a series of moves by China to marginalise and isolate the US Dollar
China Daily: IMF should build multiple reserve currencies including SDR and supervise their issuance and cross-border capital flows
Today, the most urgent task for the G20 is reform of the international monetary system. With sharply fluctuating exchange rates, it is difficult to monitor international capital flows, identify financial risks in advance, and save the global system once a crisis happens. If the current international monetary system cannot be successfully reformed, a new great financial crisis will soon be upon us. So, the G20 should focus on its historical mission to urgently reform the international monetary system.
The outbreak of the global financial crisis in 2008 reflected the inherent vulnerabilities and systemic risks in the existing international monetary system. It has demonstrated that using a national currency as the global reserve currency is not suited to the world economy today, as the issuing countries of reserve currencies are constantly confronted with the dilemma of whether to achieve their domestic monetary policy goals or meet other countries' demand for reserve currencies.
The G20 should set up a permanent secretariat within the International Monetary Fund to improve its policymaking and implementation capabilities. Through in-depth communication, the G20 should put together a reform agenda for the international monetary system. This reform agenda should include a consensus on the guiding ideology, basic principles, clear reform objectives, a concrete action plan, and the respective responsibilities of each nation.