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U.N. PANEL SAYS WORLD SHOULD DITCH THE DOLLAR: World leaders discussing move to single currency

In Uncategorized on March 19, 2009 at 2:26 pm
Will the euro become the world's currency?

Will the euro become the world's currency?

“A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar,” reports a Reuters story this morning.

“Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket. Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform. ‘It is a good moment to move to a shared reserve currency,’ he said.”

The story comes just a day after the Moscow Times reported that Russian leaders are coming to the G20 summit of world leaders in London on April 2nd prepared to call for moving to a new single common currency. The leaders of Iran, Libya and Kazakhstan have also begun speaking about creating single currencies within their regions — the Middle East, Africa and Central Asia, respectively. The IMF, Asian Development Bank and other international and regional financial institutions in recent years have been studying how to move to a single currency as well. The “Euro” is the model many are looking to, in part because 20% of the world’s foreign exchange reserves are already held in euros.

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