Thoughts & Talks

Why does world need more currencies?

The Bretton Woods Conference (*1) is one of greatest international economic gatherings ever. And while no one can say yet whether the role of the USD in the international monetary system will be the same dominant in future, there are more than just doubts. One key feature of the Bretton Woods system was that countries would bind their exchange rates to the US dollar. While this system was effectively eliminated in 1971, the US dollar’s dominating role in the global currency system is still more or less intact – a reality that many people wouldn’t like to accept. But such discontentment with the USD function as the dominant global reserve currency is not new. In the 60s, the French finance minister Valery Giscard d’Estaing strongly criticized this "privilege” of the United States dollar’s status in the currency system worldwide. (more…)