Need two copies. One for me and one for my friend. 200 words each. Due in 18 hours
A re-alignment of the global monetary system?
The current monetary system rests mainly on flexible exchange rates. 60.89% of the allocated
currency reserves in the world are in US Dollars, 20.54% in euros, the rest being allocated
among other currencies, mainly the Japanese yen (5.70%), British pound (4.62%), Chinese
renminbi (1.96%), Canadian dollar (1.88%), Australian dollar (1.69%), and a remaining 2.56% in
other currencies (IMF, 2018). The Chinese currency became a world reserve currency in 2016
when the IMF integrated it in its basket of currencies on which the Special Drawing Rights is
derived from. New developments in the global monetary system are challenging the current
order with the rise of the petro-yuans, initiatives to circumvent the SWIFT Network (Society for
World Interbank Financial Telecommunications), and technological developments such as
blockchains.
Given the shift of the global economy and the rise of a multipolar global order, can the current
currency alignment prevail? Please offer your perspective on this topic, identifying the various
dimensions of the issues and impacts on global operations, and offer some recommendation(s)
on how best to address them.
The answer should be (200 (+/- 10%) words