United Nations wants new global reserve currency

Speaking at an annual meeting between the International Monterary Fund and the World Bank, United Nations Undersecretary-General for Economic and Social Affairs, Sha Zukang, on Tuesday called for a new reserve currency

On Tuesday, the United Nations called for a new global reserve currency to offset the dominance of a weak United States Dollar, according to AFP. Zukang elaborated that the dollar supremacy has allowed the US to have a large trade deficit. Speaking in Istanbul, Turkey at the annual meeting between the IMF and the World Bank Zukang said, “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.” Zukang further went on to discuss Special Drawing Rights, which is a “truly global reserve currency.” SDRs are mostly used in IMF transactions are made up of four currencies: Euro, Yen, Pound and the Dollar. Earlier this year, China called for a new global reserve currency. Last month, the UN also called for, once again, a new global reserve currency, according to the Daily Telegraph. Many nations are discussing the possibility and published reports also speculate that Gulf nations will dump the Dollar and use other currencies and possibly even gold bullion. In September, Digital Journal reported that Iran dumped the Dollar for the Euro because of the fledgling US economy and the devaluation of the country’s currency.