Tuesday, October 6, 2009

UN Official Calls for New Reserve Currency

United Nations undersecretary-general for economic and social affairs, Sha Zukang, called today for a new global reserve currency to end dollar supremacy which has allowed the United States the "privilege" of building a huge trade deficit.

"Important progress in managing imbalances can be made by reducing the reserve currency country?s 'privilege' to run external deficits in order to provide international liquidity," he said/

Speaking at the annual meetings of the IMF and World Bank in Istanbul, he said: "It is timely to emphasise that such a system also creates a more equitable method of sharing the seigniorage derived from providing global liquidity."

He said: "Greater use of a truly global reserve currency, such as the IMF?s special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes," he said.


  1. "Sharing seinorage"?

    The Powers That Be are hardly disguising the vastness of their greed now.

    This is going to be one bumpy fkn ride.

  2. More power to them. There is no hope in de-nationalizing money which is the preferred route to sound currency. But increased competition can also work even if they don't actually succeed in bringing an international unit into existence.