A UN panel has recommended a world currency replace the USD as the world’s reserve currency. Basically the world currency would a combination of currencies in a basket with weightings:
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
Which if I recall my economic history classes from University, fell over because of the great divergence in individual European currencies.
Russia is also planning to propose the creation of a new reserve currency…
A regional reserve currency, that is. I don’t see a EU styled world currency happening. There are too many countries, mostly in the third world, that derive a strong competitive advantage from their low currency pair with the USD. If the USD fell heavily – which given Obama’s heavy debt funded programmes remains a possibility – then the situation might change. However, it was only a few months ago that the AUD was almost at parity with the USD, now look at it. Point is, predicting FOREX markets is difficult so I won’t begin here.