United Nations Wants One Global Currency - Controlled by IMF

A United Nations report today called for the abolishing of the U.S. dollar as the global reserve currency, and replacing it with the International Monetary Fund’s special drawing rights (SDRs).

The UN doesn't want to replace with a basket of currencies either, but only on on IMF-controlled SDR’s.

The report also said, “A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency.”

Some believe the US dollar is being attacked for the purpose of exploiting the weakening economic situation in order to institute a global currency issued by the IMF.

UN: New Global Reserve Currency

U.S. Dollar Reserve Currency

Saying that the U.S. dollar as the global reserve currency has empowered America to build up their huge trade deficit, UN undersecretary-general for economic and social affairs, Sha Zukang, said "Greater use of a truly global reserve currency, such as the IMF's special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes."

Zukank added, "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."

SDRs are used for IMF transactions, and currently base their value on a basket of four currencies: the U.S. dollar, pound, yen and euro.

There is mounting pressure for the U.S. dollar to play a lesser role as the reserve currency of choice around the world, and a number of talks have gone on on how to go about that.

U.S. Dollar Reserve Currency

U.S. Dollar Losing Global Favor

World Bank president Robert Zoellick said recently that the U.S. can no longer assume its position as the economic superpower will remain unchallenged, and that the days of the U.S. dollar being the preferred global currency are coming to an end.

Zoellick also stated that it would be a mistake to think that the dollar be the major reserve currency in the world as well. Other currencies expected to gain more favor and global acceptance are the Chinese renminbi and the euro.

In other words in the mid-term future there will be more options as the U.S. dollar continues to be battered under the misguided policies of the Obama administration and the Federal Reserve printing press.

In remarks considered unusual for a World Bank president, Zoeller also criticized the Obama administration for attempts to make the Federal Reserve even more powerful, while saying the Treasury Department should be vested with more power because of the oversight Congress now has over it, which at this time the Federal Reserve doesn't have.