A new United Nations report released on June 29 calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value. According to some, the demise of dollar is a matter of mere months.
A report by the United Nations says the American dollar should be ditched as the main global reserve currency. It said that the global financial meltdown has exposed systematic weaknesses, one of which is the reliance on the greenback. It also found that developing countries have been hit by the dollar’s loss of value in recent years. A number of states, including Russia and China, have repeatedly called for a new reserve currency system. The UN has now suggested using a basket of currencies for this purpose. London-based markets strategist Nick Parsons believes it’s only a matter of months before the dollar will start to go down.