IMF and China Accelerate Creation of New Global Reserve Currency
- IMF and China Accelerate Creation of New Global Reserve Currency
by Valentin Schmid, Epoch Times
For most people, SDR sounds like an odd disease. And yet, it could be the word’s next reserve currency, at least if China and the International Monetary Fund (IMF) get their way.
The so-called Special Drawing Rights (SDR) are an IMF construct of actual currencies, right now the euro, yen, dollar, and pound. It made news last year when the Chinese renminbi was also admitted, although it won’t formally be part of the basket until October 1st of this year.
IMF members have it and can trade it with each other for actual currencies, which indebted nations like Greece and the Sudan frequently do. The average Joe or the average company on the street can’t hold the instrument right now, let alone spend it.
But that’s precisely what the global monetary elite wants in the not too distant future, and it will use China as a Guinea pig. Before the meeting of G20 central bankers and finance ministers in Chengdu, China, from July 22-23 some academics started pushing the idea of an extended use of the SDR (currently worth $1.39)
“Establishing the SDR as the leading global reserve currency would have far-reaching benefits” Jose Antonio Ocampo, a professor at Columbia University, wrote in a post on Project Syndicate on July 8.
“Beyond the push to use SDRs more actively in IMF programs, governments could issue SDR-denominated bonds. Moreover, private banks could increase their use of this monetary unit, just as some European banks used the so-called European Currency Unit, helping to pave the way for the euro,” he continues.
Sorry, the comment form is closed at this time.