Recent experience with the euro as an official reserve asset is instructive.

The dollar has lost what any reserve asset should have a stable value.

A better idea is to start work now on creating a more attractive global reserve asset.

After all, it is the liquidity of US Treasury bonds that makes them the world s leading reserve asset.

This is plausible in terms of a future decline in the dollar s importance as a reserve asset and safe haven.

In the case of IMF, the monetary authorities of member States consider their IMF position as an official reserve asset.

Department of Asset Recovery and International Legal Cooperation (DRCI)

We believe that the neutrality proclaimed by Belarus is an international asset.

Simply put, the global economy has at its center a dysfunctional political regime that generates recurrent threats of default on the world s major reserve asset.

The outside world, which relies on the dollar as its primary trade vehicle and therefore reserve asset, cannot be expected to watch passively as dollars continue to pour into their currency, commodity, and asset markets, with no clear end in sight.

This obvious externality required policy responses in the emerging countries limits on capital inflows, reserve accumulation, and measures to restrict credit and restrain asset price inflation.

The establishment of SDRs was accompanied by a commitment, included in the IMF Articles of Agreement, to making the special drawing right the principal reserve asset in the international monetary system (Article VIII, Section 7 and Article XXII).

As deficits accumulate, the cost of servicing the net international asset position grows.

The better known consequence has been deepening uncertainty about the US dollar, the main global reserve currency, and US Treasury securities, supposedly the world s safest financial asset.

Following the creation of SDRs in 1969, IMF members committed to make them the principle reserve asset in the international monetary system, as stated in the Articles of Agreement. But the peculiar way in which SDRs were adopted limited their usefulness.

Asset recovery

Asset management

Asset management

In order to make the SDR the principal reserve asset via the allocation route, close to 3 trillion in SDRs would need to be created, an unrealistic proposition.

Second, it increases global asset demand, generating asset price inflation.

The asset that is purchased need not be a physical asset.

Reserve

reserve

reserve

Digital asset management

And the international bankers succeeded to install another central bank in 1913, the Federal Reserve.

Reserve left

Reserve Reform

Financial reserve

Strategic reserve

Force Reserve

Reserve Fund

Operational reserve

Reserve component

The Incredible Vanishing Asset

Initiative Fixed asset tracking

Audit of asset management

Water as an asset

Automated asset management system

Paribas Asset Management, Paris

Warburg Asset Management, London

So it's an asset.

That's an asset, right?

Moreover, unlimited quantitative easing by the Bank of Japan, the Federal Reserve, and the European Central Bank also increases the risk of volatile capital flows and asset bubbles in Asian emerging economies.

So, instead of becoming the principal reserve asset of the global system, the proportion of SDRs in global reserves shrank to a tiny fraction, rendering the SDR the monetary equivalent of Esperanto.