UN urged to change U.S. dollars with a new reserve currency

The role of the dollar in international trade should be reduced by creating a new currency, says UN report cited by Bloomberg. Countries of the UN should agree to create a global reserve bank to let the currency in circulation and to control the national exchange rates in the countries of the organization, regarded by the United Nations Conference on Trade and Development. China, India, Brazil and Russia called earlier this year to replace the dollar as the main reserve currency after the global financial crisis broke by the collapse of the U.S. mortgage market. Now, however, is the first time that a major international organization offers exchange for dollars. Unlike the Chinese authorities, however, the UN does not believe that the special drawing rights (SDRs) issued by the International Monetary Fund, are sufficient to help emerging markets that need liquidity. Emerging markets are under-represented in the IMF and thus receive a smaller share of the total issued SDRs. It should therefore be established an organization to manage the real exchange rates between countries based on purchasing power and adjusted for inflation and the level of development of the country considered by the UN.