Will The USD Be Replaced By The SDR Or The CNY As The Next Reserve Currency?

http://www.zerohedge.com/article/will-usd-be-replaced-sdr-or-cny-ne...


Jim O'Neill, who did not make any friends within the bear community earlier today, has written an interesting paper on the IMF's Special Drawing Rights, and whether this hypernational
currency can ever become a reserve currency as is, and/or with the CNY
as a constituent member. While O'Neill as usual focuses on the angle of
the "next paradigm" BRICs, and how they will increasingly dominate
global economics, he does pose an important question: with the dollar
likely to suffer the side effects of either hyperdeflation,
hyperinflation, or hyperstagflation, will the next reserve currency be
a diluted melange of other flawed fiat constructs (i.e., the SDR), or
the currency of the one country, which for all its flaws, still has the
cleanest balance sheet backing its own fiat construct. On the other
hand, the question of whether this analysis is moot to begin with, and
the world will revert to the gold standard as the ongoing crisis of
confidence in all paper money flares up, is not raised even once... We
wonder (not really) what Jim O'Neill would have to say on that
particular issue.

Here are the main bullets:

  • The issue of the ‘international reserve currency’ and the possible role of the IMF’s Special Drawing Rights (SDR) has moved from obscurity to the
    centre of discussions about the future.
  • Given China’s importance in terms of its share of world trade, the CNY should now be part of the SDR. The case for including it can only become more obvious
    as this decade progresses.
  • However, actually including the CNY as a constituent of the SDR is likely to remain a challenge without the CNY becoming more widely used internationally, including as a reserve
    asset.
  • The case for including other BRIC currencies in the SDR, especially the RUB, is also likely to become stronger over the coming decade.
  • Although the Dollar will probably not be as dominant in 2020 as it is today, it is far from clear that it needs to be replaced by the SDR—or by anything else—as the main reserve currency.
  • For the SDR to be attractive to private users, it will need to include the CNY and possibly other BRIC currencies. However, this alone would not
    guarantee that the SDR would be more attractive to private investors.

The paper is a critical follow up to anyone who found Albert Edward's earlier analysis of collapsing global FX reserves relevant. GS SDR Currencies




Full .PDF seen here

Views: 66

▶ Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Sandy posted a photo
4 hours ago
Doc Vega posted a blog post
16 hours ago
cheeki kea commented on cheeki kea's blog post What is Play doh Theory ?
yesterday
cheeki kea posted a blog post
yesterday
Doc Vega posted blog posts
yesterday
Snakedaddy favorited tjdavis's photo
Wednesday
Doc Vega commented on Doc Vega's blog post The Left's Halloween Fantasy
"tjdavis Thanks for your support! "
Tuesday
Doc Vega commented on Less Prone's video
Thumbnail

🔴 LIVE in English: COVID Shots Dutch Court Hearing vs Bill Gates, Pfizer et al. — Oct 22

"Ha, one thing that is hllarious is since Bill gates is a globalist he will submit to the court that…"
Monday
Doc Vega commented on Less Prone's video
Thumbnail

🔴 LIVE in English: COVID Shots Dutch Court Hearing vs Bill Gates, Pfizer et al. — Oct 22

"Less Prone! I couldn't agree more! We the people are not allow to be at the helm and the ones…"
Monday
Doc Vega posted blog posts
Monday
tjdavis favorited Doc Vega's blog post The Left's Halloween Fantasy
Monday
Doc Vega posted a blog post

The Orbital Horror-Halloween Story Number 5

Captain, Douglas Mitchell, of NASA’s space exploration unit had been invited to a hush hush meeting…See More
Oct 30
Snakedaddy favorited Less Prone's profile
Oct 28
Tori Kovach left a comment for Less Prone
"Hello Less Prone, I am an infrequent visitor just to let you know. It is nice to know there are…"
Oct 28
Tori Kovach and Less Prone are now friends
Oct 28
Doc Vega's 5 blog posts were featured
Oct 28
tjdavis's blog post was featured
Oct 28
Less Prone favorited tjdavis's video
Oct 28
Less Prone favorited cheeki kea's photo
Oct 28
Less Prone favorited tjdavis's photo
Oct 28

© 2026   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted