By Alexander Nicholson
June 6 (Bloomberg) — The Inteational Monetary Fund said itâÂÂs possible to take the âÂÂrevolutionaryâÂÂ step of creating a new global reserve currency to replace the dollar over time.
The IMFâÂÂs so-called special drawing rights could be used as the basis for a new currency, First Deputy Managing Director John Lipsky told a panel discussing reserve currencies at the St. Petersburg Inteational Economic Forum today.
âÂÂThere are many, many attractions in the long run to such an outcome,âÂÂ Lipsky told a panel discussing reserve currencies at the St. Petersburg Inteational Economic Forum today. âÂÂBut this is not a quick, short or easy decision,âÂÂ he said, adding that it would be âÂÂquite revolutionary.âÂÂ
The SDRs would have to be delinked from other currencies and issued by an inteational organization with equivalent authority to a central bank in order to become liquid enough to be used as a reserve, he said.