Serious threat of instability in currency exchange rates the growth of world economy

France will start in November this year, as the rotating presidency of the Group of Twenty. French President Nicolas Sarkozy delivered a speech recently, as France holds the presidency of the Group of Twenty set "ambitious" three main issues. In which Sarkozy is most stressed is to promote international monetary system reform. Public opinion, the international monetary system reform is a long slow process. Sarkozy pushing reform of the international monetary system, the real intention is to hope that the performance on the international stage, boost domestic public support rate for 2012 followed by presidential elections in momentum.

Nicolas Sarkozy, the French envoys meeting 25 speech, I hope the French presidency as during the Group of Twenty, to promote international monetary system, the raw material market price stabilization mechanism and the mechanism of building the Group of Twenty three aspects of reform. Sarkozy, the first reform of the international monetary system should be carried out. He said the serious threat of instability in currency exchange rates the growth of world economy, the currency of a country dominated by the international monetary system in the face of today's multipolar world inconsistent, causing imbalance in the international monetary reserves. He called for the establishment of a not help a country-led international reserve assets, to enhance the overall stability of the international monetary system.

In fact, this is not the first time Mr Sarkozy to reform the current issue of U.S. dollar as the leading voice of the international monetary system. In July 2009 the Group of Eight summit in Italy, L'Aquila, Sarkozy again called on to discuss the issue of the international monetary system, in particular, to discuss exchange rate issues and implement a multi-currency-based U.S. dollar single currency rather than the "multi-currency system "possibilities. In his view, promote international monetary system should be more diversified, reducing dependence on the dollar. Since then, Sarkozy also said on many occasions, the dollar should not be the main reserve currency in the global economy.

Existing international monetary system after the so-called Bretton Woods system, it does not establish a stable monetary system and institutions, there is no hard and fast rules or the development of automatic sanctions. Is actually a "non-system system," the dollar as the leading international currency. Dollar-based international monetary system into the output sub-prime crisis, the United States, a major channel to attract global investment. The U.S. dollar dominated foreign exchange reserves, other countries are not only commitment to the U.S. demand recession due to the loss of the real economy, but also for the United States must share the risks of financial crisis, stress and crisis management, even developed economies like the European Union can not remain indifferent. For this reason, reform the international monetary system has become increasingly intense.

Analysts believe that the international monetary system reform is a long slow process, from the short term, the global financial order will be "The U.S. dollar dominance, multi-party participation" pattern. First, the U.S. economic supremacy can not shake the short term, the crisis after the end of its financial system and economy is likely to remain viable, in science and technology continue to maintain a leading position, its economic strength is still strong, that the dollar remains relatively strong position laid basis. Secondly, the current is still not able to replace the dollar with other currencies, the international status of the euro zone has considerable economies of scale with the United States can not offer comparable to the U.S. global economic growth, and financial market size, breadth and depth can not absorb the huge global working capital, and the debt crisis broke out in Europe in the short term will be determined at a competitive disadvantage. Third, the power of emerging economies and its role in the global financial order improvement is a gradual process, and may even occur repeatedly, emerging economies still can not get rid of dollar short-term pattern of dependence. Can be seen, the global financial order can only be a gradual rebuilding process.

It is with this judge, public opinion, Sarkozy pushing for reform of the international monetary system, the real intention of the doubters. Public opinion in the face of continuing decline in the polls, Sarkozy hopes his performance in the international arena. British "Financial Times" pointed out that Sarkozy main "financial card", is hoping some gains in the financial sector to the presidential election in 2012 in the weakening potential rivals, the current president of the International Monetary Fund Lancaster Strauss - Kahn's appeal. United States, "The Wall Street Journal," commented that the domestic downturn is struggling in the polls Sarkozy tries to promote reform and defend the euro to attract voters. French "Le Figaro" of that second half of 2008 in France during its EU presidency, Nicolas Sarkozy, active in the international arena, has earned praise, but also boosted after falling in the polls. In order to promote international monetary system reform, Sarkozy is bound to the shuttle in the international arena, international activities will be very frequent, and thus demonstrate to the public on the international stage a strong image of national leaders to restore public support to pave the way for the 2012 presidential election .