Category Archives: Global Currency

United Nations conference calls for new global currency

Raw Story | Sep 8, 2009

The United Nations Conference on Trade and Development said in a report published Monday that the U.S. dollar should be replaced as the world’s standard reserve currency, giving rise to a new global currency managed by an as-yet undetermined financial regulatory organization.

Heiner Flassbeck, director of the conference, told Bloomberg News that changes needed in the world’s financial systems rival the scope of the Bretton Woods or European Monetary System agreements.

The Bretton Woods agreement established in 1944 the International Monetary Fund and World Bank, following allied victory in World War II.

“[The] dominance of the dollar as the main means of international payments [has] played an important role in the build-up of the global imbalances in the run-up to the financial crisis,” the report says. “Another disadvantage of the current international reserve system is that it imposes a greater adjustment burden on deficit countries (except if it is a country issuing a reserve currency) than on surplus countries.”

The UN adds: “Such a multilateral system would tackle the problem of destabilizing capital flows at its source. It would remove a major incentive for speculation and ensure that monetary factors do not stand in the way of achieving a level playing field for international trade. It would also get rid of debt traps and counterproductive conditionality. The last point is perhaps the most important one: countries facing strong depreciation pressure would automatically receive the required assistance once a sustainable level of the exchange rate had been reached in the form of swap agreements or direct intervention by the counterparty.”

The move should not be surprising to observers of global economics, as a U.N. panel of currency experts came to the same conclusion in March, according to Reuters.

The conference specifically emphasizes the enhancement of the International Monetary Fund’s “special drawing right” (SDR), which may serve as the “supranational” currency.

World-wide shake-up
The past year has seen a dramatic shake-up in oversight and management of the U.S. and global economies.

For months, Russia and China have been calling for a new world reserve currency.

Russia, for its part, supports replacing the dollar on the world stage, suggesting the Chinese yuan may be the quickest path to diversified reserves.

“There is a need to make the IMF a true representative of the world’s leading economies. It’s not there right now,” said Russian finance minister Alexei Kudrin in June, noting that China had a lower representation quota than Switzerland or Belgium.

Kudrin also said he did not expect to see any new monetary unions rise, although the Gulf states agreed in May to use Saudi Arabia as a base for a pending “monetary union” and new central banking authority.

The issue of IMF reform should therefore be raised “in earnest, in a bold way,” Kudrin said, adding countries should be “represented in proportion to the strength of these economies and their role in the world economy.”

Over the weekend, U.S. Treasury Secretary Timothy Geithner argued successfully to strengthen the “Basel II” framework for international commerce, which would see all G20 member nations increase their currency liquidity and allow centralized, “global supervision” of financial industries. The Obama administration is committed to full compliance with the framework by 2011.

The Group of 20 finance ministers and central bank governors plan to meet in Pittsburgh, Pennsylvania on Sept. 24 and 25. Several major liberal groups are planning demonstrations, including the A.N.S.W.E.R. Coalition. The city has already secured a deal to use National Guard troops provide a security buffer for the world’s financial elite during their meeting.

Also on Sunday, a key Chinese official predicted that the dollar’s increasing supply, which grows with added liquidity, meant the currency could “fall hard” within “a year or two.” The official also signaled that China is moving its reserves away from the dollar and toward gold, euros and yen.

Washington has staunchly defended the dollar as the world’s reserve, with President Obama, Federal Reserve chairman Ben Bernanke and Treasury Secretary Timothy Geithner all insisting there is no need for a new global reserve currency.

The UN report which makes the recommendations is available online (PDF link).

Medvedev sees single currency dream in G8 coin gift

medvedev_global currency2

Medvedev sees single currency dream in G8 coin gift. AFP

AFP | Jul 11, 2009

L’AQUILA, Italy (AFP) — Even if Russia’s call for a global currency failed to gain much traction at a G8 summit, President Dmitry Medvedev took home a coin meant to symbolize that the dream may one day come true.

The Russian leader proudly displayed the coin, which bears the English words “United Future World Currency”, to journalists after the summit wrapped up in the quake-hit Italian town of L’Aquila.

Medvedev said that although the coin, which resembled a euro and featured the image of five leaves, was just a gift given to leaders it showed that people were beginning to think seriously about a new global currency.

United Future World Currency

“In all likelihood something similar could appear and it could be held in your hand and used as a means of payment,” he told reporters. “This is the international currency.”

Russia, along with China, has been a vocal proponent of diversifying the global currency system away from the dollar, which has dominated global finance and commerce since the end of World War II.

French President Nicolas Sarkozy at the summit joined the band in favour of dumping the dollar as the international currency of reference, insisting that “we cannot stick with just one single currency.”


Russian President Dmitry Medvedev pulls new world currency from his pocket

Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8

Gold coin symbolising future world currency presented to G8 leaders

Medvedev given first coin of future supranational currency at G8

Medvedev Shows Off Future World Money

“Mr. Dodd, all of us here at the policy making level of the foundation have at one time or another served in the OSS or the European Economic Administration, operating under directives from the White House. We operate under those same directives…The substance of the directives under which we operate is that we shall use our grant making power to so alter life in the United States that we can be comfortably merged with the Soviet Union.”

-Rowan Gaither, the President of the Ford Foundation during a meeting with Norman Dodd, Research Director for the Reece Committee, 1953.

Moscow Times | Jul 14, 2009

By Alexandra Odynova

President Dmitry Medvedev showing reporters a sample gold coin of a possible global currency at the G8 summit in L’Aquila, Italy, on Friday. Mikhail Klimentyev / RIA-Novosti / AP

President Dmitry Medvedev showing reporters a sample gold coin of a possible global currency at the G8 summit in L’Aquila, Italy, on Friday. Mikhail Klimentyev / RIA-Novosti / AP

After months of pushing for a new world currency, President Dmitry Medvedev had more than an idea to tout at his G8 news conference. He had the real thing.

With a broad grin, Medvedev held aloft a shiny gold coin Friday that he said represented a “symbol of unity” and a possible “future world currency.”

“I have some supranational currency in my pocket that I got as a souvenir. This is a test sample of a currency unit under the Unity in Diversity motto,” Medvedev said, holding the coin between two fingers.

“It is called the United Future World Currency. It can already be seen and touched,” he said, according to a transcript posted on the Kremlin’s web site.

Examples of the coin, worth $3,900 and produced by the United Future World Currency, a group backing the idea of a global currency, was presented to all world leaders attending the Group of Eight summit in L’Aquila, Italy.

United Future World Currency

The coin was made by Belgian Luc Luycx, who also designed one side of the Euro coins, and are called “eurodollars” in a symbolic call for a common currency to unite Europe and the United States.

Medvedev pulled out his coin when reporters asked him about new reserve currencies at the news conference that closed the three-day summit. “This is a symbol of our unity and our desire to solve such issues,” Medvedev said.

Russia and China have called for a “super currency” to replace the U.S. dollar as a reserve currency, and French President Nicolas Sarkozy said at the summit that the dollar’s supremacy as a reserve currency is outdated.

“This has become a regular theme now,” Medvedev said Friday. “We are discussing the creation or, to be more correct, the appearance of new reserve currencies, including the possibility of making the Russian ruble such a currency unit.”



Russian President Dmitry Medvedev pulls new world currency from his pocket

Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8

Gold coin symbolising future world currency presented to G8 leaders

Medvedev given first coin of future supranational currency at G8

World Currency Coin of the Future Presented to G8 Leaders


Coin News | Jul 12th, 2009

The sample of the first “test” currency from the international project for a new virtual global currency, given the draft name, “United Future World Currency – Eurodollar,” was presented as the exclusive gift to Heads of State and Government at the G8 Summit: Barack H. Obama, Dmitij Anatolyevich Medvedev, Gordon Brown, Nicolas Sarkozy, Angela Merkel, Silvio Berlusconi, Taro Aso, Stephen Harper, Josè Mauel Barroso, Fredrik Reinfeldt.

The final name and symbol for the new currency will be decided in a competition for children in 1000 schools throughout the world, organised by the Museo del Tempo.

The initiative began in Italy and enjoys the patronage of the Italian Prime Minister’s Office and the Italian Treasury. Although the initial aim is to unite the United States of America with the United States of Europe, it will also be open to other Countries.

The example of the Euro, which united Countries with different histories and cultures under the same currency, is a concrete precedent that demonstrates how this project can indeed come to life and gather together nations from several different continents.

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