Robert Zoellick, President of World Bank since July 1st, 2007, has made a request today to developed countries to revamp the world’s monetary system to make their economies more sustainable through better currencies.
In this perspective, Zoellick stated that the Chinese Yuan should be given a more significant position in a restructured system, emphasizing assertions made a week ago by the managing Director of the International Monetary Fund, Dominique Strauss-Kahn.
Many executives in the world of finances would sustain in principle the idea of integrating the Yuan’s SDR (Special Drawing Rights), which in turn would speed up the full convertibility of the Chinese currency.
The U.S. dollar will continue to be the main monetary reserve, but in the long term, the global economy will have to deal with and handle a larger multicurrency system, Zoellick said. He revealed that countries participating in the SDR (a four currency basket: the Sterling Pound, the Euro, the U.S. dollar, and the Japanese Yen – updated daily by the IMF – International Monetary Fund) should re-examine all characteristics of monetary and currency exchange rates during an SDR round-table.
SDR is the monetary mechanism created by the IMF in 1969 with the purpose of increasing the official reserves of the countries that are members of IMF.