Author Topic: U.N. panel says world should ditch dollar  (Read 1565 times)

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Offline Black Swan

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U.N. panel says world should ditch dollar
« on: March 19, 2009, 06:43:04 PM »
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LUXEMBOURG (Reuters) - 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.

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.

Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value -- though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.


Some analysts said news of the U.N. panel's recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.

"Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar's slide between 2002 and mid-2008," CMC Markets said in a note.

Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.

It has significantly reduced the dollar's share in its own reserves in recent years.


http://www.reuters.com/article/newsOne/idUSTRE52H2CY20090318


I expect Totus to talk to them and all will be well again.

Offline Duke Nukum

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Re: U.N. panel says world should ditch dollar
« Reply #1 on: March 19, 2009, 06:45:34 PM »
I recommend we kick the UN out of the country and convert the UN building to a basket factory.
“A man who has been through bitter experiences and travelled far enjoys even his sufferings after a time”
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Offline Lacarnut

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Re: U.N. panel says world should ditch dollar
« Reply #2 on: March 19, 2009, 07:38:32 PM »
I recommend we kick the UN out of the country and convert the UN building to a basket factory.

I second that plus withdraw from that f. up organization.

Offline Black Swan

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Re: U.N. panel says world should ditch dollar
« Reply #3 on: March 19, 2009, 07:43:24 PM »
true dat to both of you. 

Offline Duke Nukum

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Re: U.N. panel says world should ditch dollar
« Reply #4 on: March 19, 2009, 07:48:14 PM »
true dat to both of you. 
By the way, Welcome Black Swan!  :cheersmate:
“A man who has been through bitter experiences and travelled far enjoys even his sufferings after a time”
― Homer, The Odyssey

Offline Black Swan

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Re: U.N. panel says world should ditch dollar
« Reply #5 on: March 19, 2009, 07:55:04 PM »
Thank you Duke, I appreciate that.  Just getting my feet wet.