February 26, 2021
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Dominance of US Dollar may end sooner than earlier thought The world is in search of a real global currency which should be acceptable to all parties and run global economic prospects smoothly for another 100 years at least. The idea of Euro has failed but now leaving a hole in the entire international monetary system. The United Nations has been issuing various inputs that openly call for an alternative to the US Dollar as the reserve currency of the world. In particular, one UN report envisions a new global reserve system which no longer relies on the United States dollar as the single major reserve currency. Iran has been one of the most aggressive nations when it comes to moving away from the US dollar in international trade. For example, it has been reported that India will begin to use gold to buy oil from Iran. The International Monetary Fund has also published a series of reports calling for the US dollar to be replaced as the reserve currency of the world. In particular, one IMF paper entitled “Reserve Accumulation and International Monetary Stability” actually proposed that a future global currency be named the ‘Bancor’ and that a future global central bank could be put in charge of issuing it. Broad perspective A global currency, Bancor, issued by a global central bank would be designed as a stable store of value that is not tied exclusively to the conditions of any particular economy. As trade and finance cont
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