Reform of monetary system

IMF should build multiple reserve currencies including SDR and supervise their issuance and cross-border capital flows

Today, the most urgent task for the G20 is reform of the international monetary system. With sharply fluctuating exchange rates, it is difficult to monitor international capital flows, identify financial risks in advance, and save the global system once a crisis happens. If the current international monetary system cannot be successfully reformed, a new great financial crisis will soon be upon us. So, the G20 should focus on its historical mission to urgently reform the international monetary system.

The outbreak of the global financial crisis in 2008 reflected the inherent vulnerabilities and systemic risks in the existing international monetary system. It has demonstrated that using a national currency as the global reserve currency is not suited to the world economy today, as the issuing countries of reserve currencies are constantly confronted with the dilemma of whether to achieve their domestic monetary policy goals or meet other countries' demand for reserve currencies.