Before anyone comments on whether using SDRs as a new supranational currency, s/he should read the article by Zhou Xiaochuan titled, "Reform the International Monetary System." Here's the link: http://www.pbc.gov.cn/english/detail.asp?col=6500&id=178 The article is quite thoughtful and logical. Couple points: 1. The idea of creating a international currency is not new. See Mr. Xiaochuan's article for the history. 2. SDRs do not, necessarily, have to REPLACE the US Dollar immediately. Rather, SDRs could serve as a currency used initially by Central Banks and international institutions, like the IMF. 3. The global supply of US Dollars, of which 2/3rd's is held outside the US, could be exchanged for SDRs and the US Dollars could be "retired" thereby not increasing the excess supply of US Dollars and the possibility of inflation. 4. George Soros (not my favorite economist due to his emotionally negative position on Russia) has suggested that oil might be an excellent asset upon which the SDRs could be valued. He wrote about this topic over 20 years ago in his book, "The Alchemy of Finance." I think it is well worth the Russians to look into Soros' suggestions regarding using oil as the asset which might back SDRs instead of the Chinese suggestion of a basket of currencies or Keynes' suggestion of a basket of commodities. 5. The first step in making this a reality is for the new loaner countries to the IMF (read: the BRIC countries) to demand that the IMF governing structure by broadened beyond the US and Europe. This is an issue that should be pushed hard because, in my opinion, the root cause of the global monetary crisis can be directed attributed to the oversupply of US Dollars worldwide over the past 18 years. The bail-out programs in Washington are only aimed at alleviating the symptoms but do not address the root cause. A switch to SDRs as the global reserve currency of choice would actually solve the problems facing monetary markets.

The heavy dependency of the world on USD as the only currency for reserve will continue to result in recurring economic and financial crisis. Both economically and politically the world's dependence on the US will be sustained as a result of the use of the dollar as the only resereve. The time has come for the world to change the imbalance and multipolarizing the economic and political power, and the chance should not be mised. But the big statetes must not forgate as they continue to forgate africa and the rest of the 3rd world they will sufer again.