Future of the International Monetary System was discussed with the Reserve Currency Institute

Tuesday, May, 26, 2015 CFA Association Russia conducted its business breakfast, where the current state of the international monetary system and the most likely scenarios of its transformation were discussed. The event, just like a number of previous ones, took place at Tverbul restaurant, Tverskoy Blvd., Moscow, and was held in English.

‘U.S. dollar has been prevailing in the international settlements during last decades. Recently the situation in the world economy is changing as, in particular, the role of China is becoming more substantial. There are active discussions about accepting Chinese yuan as a reserve currency this year, and these moves are actively supported by different countries, such as Germany, UK, etc.’, said Vladimir Tutkevich, CFA Association Russia Executive Director, opening the workshop and introducind the invited speaker, Helie d’Hautfort of the Reserve Currency Institute, Switzerland.

‘A reserve currency, firstly, has to be strong and stable enough in the middle and long terms, and, secondly, it should be liquid and easy to trade’, Helie d’Hautfort noticed. According to the speaker’s opinion, there’s no currency in the modern world that can be concidered as a suitable single reserve currency – like the U.S. dollar in the past -by central banks and global investors. The alternative is a weighted portfolio of several currencies and, maybe, other assets like gold. The latter is desirable due to its inability to be ‘printed’ by central banks and, therefore, stability of its real price in the middle and long terms.

The final part of the workshop was, as usual, dedicated to answering guests’ questions.