Is the world's new currency IMFCoin?

IMF President Christine Lagarde's comments on the forum organized by the Bank of England have created excitement.

In the Wall Street Journal, IMF President Christine Lagarde said in a speech by the Bank of England that the SDR, which is also known as the currency of the IMF, it was a role.

It was pointed out that Lagarde's statements reveal the possibility of SDR's taking up the current international money, but the IMF President's statement remarked that this possibility was not "an exaggeration hypothesis" and that the IMF should be prepared for this situation.

It is stated in the news published by James Mackintosh that SDR or IMFCoin could be used as much more currency in the future, international trade could be made with this money and the harm caused by the countries due to exchange rate fluctuations could be prevented. Also, if the IMF converts digital SDR (IMFCoin) into an international currency, the value of this money will be a unique value that will not be determined by the basket in which the various currencies are located, as it is now.

Again, according to the same report, most of the increase of SDR's international role is wanted by China and other developing countries. The report notes that China has taken steps to reduce the role of the dollar in the country for a long time, emphasizing that developing countries also want to diversify their currency-borne risks.

SDR WHAT?

The SDR, also known as the currency of the IMF, is an international reserve asset created by the IMF in 1969 to contribute to the IMF's existing official reserves. The SDR, which is allocated to member countries proportionally to IMF quotas, is also used as the accounting unit of the IMF and some other international organizations. The value of the SDR is based on a basket of major international currencies.

Source : The Wall Street Journal

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