New reserve currency debate - Repeal IMF
Posted by Ivo Cerckel on July 4th, 2009
Repeal the IMF and its SDRs.
Repeal the International Monetary Fund and its Special Drawing Rights.
Since 15 August 1971
when US of A president Richard Nixon broke the Bretton Woods Agreements
which linked the US of A dollar to gold at fixed parity
and all other currencies to the said dollar,
the IMF has no more reason to exist.
If this planet needs a reserve currency,
the debate should centre on the question
what will be the VALUE of that currency.
The debate should not be: which nation, so-called nation, will receive the exorbitant privilege of issuing it?
The IMF has no more reason to exist.
Giving its SDR basket the status of world reserve currency
is double fraud.
Ivo Cerckel
honestmoney@maktoob.com
Zeng Urges Oversight of Reserve-Currency Nations (Update3)
By Bloomberg News
Last Updated: July 3, 2009 03:17 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=apWwNzoIflIM
SNIPS
July 3 (Bloomberg) — Former Chinese Vice Premier Zeng Peiyan highlighted the nation’s concern at the risks posed by a global financial system dominated by the dollar, urging more oversight of countries issuing reserve currencies.
“There should be a system to maintain the stability of the major reserve currencies,” said Zeng, the head of a research center under the government’s top economic planning agency. Fiscal and current-account deficits must be supervised as “your currency is likely to become my problem,” he said in a speech in Beijing today.
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The People’s Bank of China renewed on June 26 its call for a new global currency and said the International Monetary Fund should manage more of members’ foreign-exchange reserves.
“To avoid the inherent deficiencies of using sovereign currencies for reserves, there’s a need to create an international reserve currency that’s delinked from sovereign nations,” the central bank said in a report. The IMF should expand the functions of its unit of account, Special Drawing Rights, the report said.
G8 united in not shifting reserve currencies-source
Reuters - Saturday, July 4
http://asia.news.yahoo.com/rtrs/20090703/tbs-g8-summit-currency-reserve-7318940.html
July 3 - The Group of Eight leading industrialized nations are showing little enthusiasm for China’s idea of questioning the dollar’s status as the main global reserve currency, a G8 source involved in preparations for next week’s G8 summit said on Friday.
“There is pretty broad consensus with the G8 that this is not the time to experiment with reserve currencies, however attractive it might seem,” said the source, speaking on condition of anonymity.
G8 sources said earlier this week that China had asked for discussion of proposals for a new global reserve currency at next week’s G8 meeting in Italy, which will be expanded on the second day to include China and other emerging nations.
The reserve currency debate centres on proposals by some emerging powers that an alternative should be found to the dollar as the main global reserve currency, to reflect the shifting balance of power in the globalised economy.
China has been particularly vocal. It holds more U.S. Treasury debt than any other country and has expressed fears that Washington’s huge spending on economic stimulus could spark inflation, hurting the value of China’s dollar-denominated reserves.
July 4th, 2009 at 14:41
UDPATE 2-Canada defends US$ as global reserve currency
Fri Jul 3, 2009 1:25pm EDT
Sees stability based on greenback in global crisis
Expects forex discussion at summit in Italy
Sees room for C$ appreciation as part of realignment
Forecasts higher jobless rates in Canada, U.S. (Adds context, remarks on regulation, paragraphs 2-3, 14-15)
By Louise Egan
http://www.reuters.com/article/usDollarRpt/idUSN0313717520090703
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OTTAWA, July 3 (Reuters) - The U.S. dollar as the global reserve currency of choice has been a stabilizing force during the current financial crisis, Canada said on Friday, downplaying calls to debate the greenback’s dominant status.
July 5th, 2009 at 08:10
India to diversify reserves away from dollar
Rebecca Bundhun
Last Updated: July 04. 2009 8:13PM UAE / July 4. 2009 4:13PM GMT
http://www.thenational.ae/article/20090704/BUSINESS/707049914/1005
SNIPS
India has joined countries including China, Russia and Brazil in pushing to diversify their reserves away from the dollar, with growing concern over the management of the world’s largest economy.
The threat to the reserve status of the US currency, which could intensify at this week’s summit of the Group of Eight (G8) industrialised nations, also raises questions in the Gulf, where most currencies are pegged to the dollar.
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Analysts say the changes would also hold significance for the Gulf. “I wouldn’t expect the Gulf states to be at a forefront of a move away from the dollar but if the dollar status changes, their relationship would inevitably change as well,” said Simon Williams, HSBC’s chief economist for Gulf markets.
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It’s natural there would be a shift in reserve holdings of countries to reflect the emergence of China and gradual shifts in the global economy, but the dollar is going to remain the reserve currency for some time,” Paul Gamble of Jadwa Investment said.