Friday, July 2, 2010

UN wants US dollar Replaced.

2007 $1 Washington coin reverse.Image via Wikipedia

  • A United Nations report today called for the removal of the U.S. dollar as the global reserve currency, to be replaced by special drawing rights (SDRs) from the International Monetary Fund.
    It called for "abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.
    "A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency," the report added.

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    The dollar plunged today following a United Nations report which called for the greenback to be replaced as the global reserve currency by the International Monetary Fund's special drawing rights (SDRs).
    The dollar's trend of moving inversely to the stock market has seemingly been snapped, with the Dow Jones falling over 100 points at one stage today. However, as soon as markets began to claw back losses, the greenback failed to follow suit, indicating that whichever way markets move, the dollar is in big trouble.
    The UN report called for "abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value," according to Reuters.

  • New UN Report Recommends Ditching The Dollar As Global Reserve Currency

  • The United Nations has slammed the U.S. dollar in a new report called Retooling Global Development. They're recommending an end to the dollar's role as dominant reserve currency, and pushing for a new global reserve regime based on a supranational currency made up of a basket of developed nation currencies.
    While we've heard this kind of recommendation before, the UN is re-energizing its push. For example, they blame the financial crisis squarely on the dollar system:
    The 2008-2009 global economic crisis demonstrates that the accumulation of deficits by the reserve-currency country, sustained by other countries because of their national policy objectives, is not self-correcting and leads to a crisis of global proportions whose costs are incurred by many innocent parties.

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