Dollar - out of politics

Russia proposes to convene an international conference to discuss the possibility of creating a single world currency, said in New York, First Deputy Foreign Minister Andrei Denisov. Earlier, Kazakhstan, Russia and then China has already offered to the international community to think about the new reserve currency, which can replace the U.S. dollar. On Wednesday, IMF chief Dominique Strauss-Kahn also acknowledged that the discussion on this topic is valid and has the right to exist. On the prospects of such a debate and the fate of the U.S. dollar in an interview with Radio Liberty, said the first vice-president of the Association of Regional Banks of Russia, the former deputy central bank head Alexander Khandruyev: supranational currency - an old idea. When created by the Bretton Woods system, this appeared John Maynard Keynes, who represented the then British delegation. In 1967 in Rio de Janeiro, an agreement was reached on the issue of Special Drawing Rights (SDR), but we know that if they wanted this currency does not become a reserve currency and is still in a cash settlement is paltry share. In your opinion, whether or not now possible to talk about the coming end of the era of the American dollar? I think that by the end of this era is still far, because the dollar as reserve currency - is not a consequence of political circumstances, and the result is that financial market participants have recognized the dollar currency calculations. Perhaps the dollar - is the worst reserve currency, but anything, paraphrasing the words of Winston Churchill, the best mankind has not yet been invented. Certainly, monetary and financial system needs some changes, but they can not be revolutionary character. And in those appeals, which are now heard from a group of some countries: to move to a supra-national monetary unit, to introduce the regional currency - do all the same political wishes rather than realistic estimates and judgments. Nevertheless, many experts have noted declining share of the dollar in international financial settlements. Do you agree with these statements? I do not watch out of the calculations in dollars. Of course, a unique situation. On the one hand, the United States on formal criteria is the biggest debtor, since the vast majority of international reserves is formed after all in U.S. dollars. But, on the other hand, the whole world is hostage to the U.S. and the U.S. want to conduct a responsible macroeconomic policy. Reserve currency status provides certain advantages, but he carries a very serious commitment. A widespread rejection of the dollar we are not seeing. Yes, there is erosion of confidence, there is a desire to diversify its currency reserves by investing in other currencies. But in what? Anything else the world can not offer. We talk about the regional reserve currencies, but until now (I'm talking specifically about Russia), we were unable to resolve the issue of transition to payments in national currency with the same Kazakhstan, and Belarus. If we look to Belarus in rubles, then only to the extent to which we lend the Belarusian economy - give her a loan with an obligation that Belarus would buy Russian goods in rubles. Russian exporters themselves, oddly enough, is not interested in rubles and foreign currency, because they, in turn, are the borrowers on world financial markets. They need the dollars, euros and yen. Most of all - dollars to service its external debt. The problem is that if there is confidence and demand for the currency, they can count on the status of a regional reserve currency. And now, whether we like it or not, the most strong demand exists for American dollars. Now, as a basis for a single world currency, Russia and China propose to use just these so-called SDR, or Special Drawing Rights IMF, which you already mentioned. Why say it about this instrument? They say because they are trying to find some alternative, instead of moving through the improvement of the existing organization of the international monetary and financial relations. And as a supranational currency, there is very much depends on two factors. First, you need a different status of the IMF - the fund must be the expression is indeed a wide range of interests, and not just a specific group of countries (its shareholders or founders). This means that you need to change the financial architecture, to which the world now is not ready. We can see how painfully long trying to adopt a constitution in the European Union, for example. And secondly, you can certainly say the introduction of a supranational currency, but it is necessary to ensure market participants appeared strong demand for this supranational currency. But it was still possible today to predict, would the world's leading nations to lead the discussion on this topic? Topic may be discussed, but it's a question many, many years. I do not rule out more, I even suspect that the world really will gradually move toward the diversification of currency calculations. Possible extension of the powers and functions of a supranational currency SDR. But it will not due to the overhaul of the International Monetary Fund. This would involve a change in the entire financial architecture of the world economy. This is a very long and ambiguous process. Now, in my opinion, it is important that the system worked on the existing principles and approaches, but would be more open, stable and transparent. And to those countries whose currencies are redundant, fully aware of the responsibility that rests on their shoulders.