UN calls for new reserve currency to end US$ 'privilege'
Published: 2009/10/07
ISTANBUL:The United Nations (UN) called yesterday for a new global reserve currency to end dollar supremacy, which has allowed the US the "privilege" of building a huge trade deficit.Trade with buyers and suppliers from around the world on Alibaba.com!
"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," UN undersecretary-general for economic and social affairs, Sha Zukang, said.
Speaking at the annual meetings of the International Monetary Fund (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. - AFP
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