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US dollar will lose universal status

US dollar will lose universal status article image
Days of the US dollar dominating global currency reserves are numbered, according to World Bank president Robert Zoellick. "The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency," said Zoellick. "Looking forward, there will increasingly be other options to the dollar." He also criticised the world's central banks for their failure to address risks in building a new global economy, though said of the US Federal Reserve Bank, "it will be difficult to vest the independent and powerful technocrats at the Federal Reserve with more authority". Moreover, Zoellick praised the G20 initiative of introducing a new peer review system, but said it was only the beginning. "Peer review of a new framework for strong, sustainable and balanced growth agreed at last week's G20 summit is a good start, but it will require a new level of international cooperation and coordination, including a new willingness to take the findings of global monitoring seriously," he said. "Peer review will need to be peer pressure."

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