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| 5/27 |
| 2009/3/23-30 [Finance/Investment] UID:52746 Activity:nil |
3/23 China announces it will continue buying Treasuries, but on same day,
also releases its own proposal for an eventual transition from USD to
SDRs as world's reserve currency
\_ Url? What are you spewing about? Special Drawing Rights?
http://en.wikipedia.org/wiki/Special_Drawing_Rights
\_ Pointless trivia: if an airline loses your luggage, the
limit of their liability is defined in terms of SDRs.
Unfortunately I have personal knowledge of this. -tom
\_ Explain. The contract I read when I flew recently said
they will cover up to $3000 and did not mention SDR
at all.
\_ Depends on the flight (whether it crosses a border or
not) and the airline (they can agree to reimburse more
than the Montreal Convention requires). But for most
airlines and international travel (including Canada
and Mexico), the limit is 1000 SDR. -tom
http://en.wikipedia.org/wiki/Montreal_Convention
\_ http://www.ft.com/cms/s/0/7851925a-17a2-11de-8c9d-0000779fd2ac.html
\-if you are interested in currency areas and global currency,
you may be interested in this talk by RMUNDELL (mundell-fleming
model, optmal currency areas, nobel prize etc)
http://www.normangirvan.info/wp-content/uploads/2009/03/mundell.pdf
i like the global currency symbol [the o with the two bars] |
| 5/27 |
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| en.wikipedia.org/wiki/Special_Drawing_Rights The amounts of each currency making up one SDR are chosen in accordance with the relative importance of the currency in international trade and finance. The determination of the currencies in the SDR basket and their amounts is made by the IMF Executive Board every five years. edit Purpose SDRs are used as a unit of account by the IMF and several other international organizations. A few countries peg their currencies against SDRs, and it is also used to denominate some private international financial instruments. Warsaw convention, which regulates liability for international carriage of persons, luggage or goods by air uses SDRs to value the maximum liability of the carrier. gold standard, the quantity of gold worldwide is relatively fixed, and the economies of all participating IMF members as an aggregate are growing, a perceived need arose to increase the supply of the basic unit or standard proportionately. balance of trade surpluses can 'draw' upon nations with balance of trade deficits. So-called "paper gold" is little more than an accounting transaction within a ledger of accounts, which eliminates the logistical and security problems of shipping gold back and forth across borders to settle national accounts. prices for roaming have been regulated with regulated prices specified in euros instead of SDR. Both the fees paid by the customers to the phone companies, and the fees paid between the companies, are regulated with amounts given in EUR. Banking support for SDRs * Some banks in Canada, Australia and NZ allow account holders to hold USD, Euros and Australian Dollars. This should not be confused with holding and SDR valued account. Eurozone (as well as Australia, Canada and NZ) for the SDR may actually be contributing to some small extent to the overall severity of the late 2000s recession -- but there is no current economics research to concretely prove this. The SDR has historically been an obscure monetary unit with limited impact inside the global banking and finance system. The macroeconomics of large scale flight to the SDR monetary unit are unclear at this stage are unclear. Economics research is required in each nation that would hope to implement SDR accounts in the consumer banking sector. The consumer level banking interoperability issues for implementing the SDR are as extensive as those of the Euro. |
| en.wikipedia.org/wiki/Montreal_Convention Warsaw Convention's regime concerning compensation for the victims of air disasters. The Convention re-establishes urgently needed uniformity and predictability of rules relating to the international carriage of passengers, baggage and cargo. Whilst maintaining the core provisions which have successfully served the international air transport community for several decades (ie the Warsaw regime), the new convention achieves the required modernisation in a number of key areas. It protects passengers by introducing a two-tier liability system and by facilitating the swift recovery of proven damages without the need for lengthy litigation. Special Drawing Rights (SDR), a mix of currency values established by the International Monetary Fund (IMF), approximately $138,000 per passenger at the time of its ratification by the United States in 2003 (as at October 2008, around $152,500). Where damages of more than 100,000 SDR are sought, the airline may avoid liability by proving that the accident which caused the injury or death was not due to their negligence or was attributable to the negligence of a third party. This defence is not available where damages of less than 100,000 SDR are sought. The Montreal Convention changes and generally increases the maximum liability of airlines for lost baggage to a fixed amount 1000 SDR (the amount in the Warsaw Convention is based on weight of the baggage). Montreal Convention was brought about mainly to amend liabilities to be paid to families for death or injury whilst on board an aircraft. |
| www.ft.com/cms/s/0/7851925a-17a2-11de-8c9d-0000779fd2ac.html -> www.ft.com/cms/s/7851925a-17a2-11de-8c9d-0000779fd2ac,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F7851925a-17a2-11de-8c9d-0000779fd2ac.html%3Fnclick_check%3D1&_i_referer=&nclick_check=1 China calls for new reserve currency By Jamil Anderlini in Beijing Published: March 23 2009 12:16 | Last updated: March 24 2009 00:06 China's central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund. People's Bank of China's website, Zhou Xiaochuan, the central bank's governor, said the goal would be to create a reserve currency "that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies". |