Skip to comments.IMF calls for dollar alternative
Posted on 02/10/2011 12:48:52 PM PST by FromLori
The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency.
The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.
SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs
While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.
Dominique Strauss-Kahn, managing director of the IMF, acknowledged there are some "technical hurdles" involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system.
"Over time, there may also be a role for the SDR to contribute to a more stable international monetary system," he said.
The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.
(Excerpt) Read more at money.cnn.com ...
The free western world developed routs of trade, full infrastructure and a language.....English... as the language of business, traded in American dollars.
America was the hub of business and will continue to be.....
You want me to deposit my money with hu?
Sounds like they’ve finished looting the American taxpayer and they need a new nation to go pillage and rob!
AND YET WE PROP UP THESE ASSHOLES WITH DOLLARS; Shut down the IMF, World Banks and all unconstitutional supra-national organizations!
How about that a hole Geithner? He’s telling people to get rid of the dollar and so is Bernanke actually. They are telling other countries to de-link because of the inflation Bernanke is causing. BTW throw in the UN they have to go!
“Mr. Geithner told the World Economic Forum in a one-on-one interview that emerging markets could manage their inflation problems better if they loosened their currencies links to the dollar, a measure that economists say would lead in most cases to an appreciation against the greenback.”