The Role Of International Reserve Currency Reform And Special Drawing Rights

The global financial crisis in2008has highlighted the need for reforming theglobal reserve system, and provided an opportunity for the Special DrawingRights(SDRs) to play a significant role in the reform.This dissertation firstly describes the main features and flaws of the currentglobal reserve system, proposes reform ideas, and explores possible ways to addressthe issues. Then, the dissertation analyzes the SDRs systematically, including itscreation, distribution, properties and the strengths and weaknesses as an internationalreserve currency. Finally, the dissertation focuses on the reform program of promotingthe SDRs to become the main international reserve currency, puts forward the idea ofthe reform, and reviews the reform program of the SDRs substitution account. Basedon the previous discussion, it raises how the role of SDRs should be further in theglobal reserve system reform.This dissertation argues that the gradual improvement of the existing SDRs is areasonable path of the global reserve system reform. To further the role of the SDRsin the reform of the reserve regime, in the short term, we should consider increasingthe SDRs bonds issued by the IMF, expanding SDRs allocation and the use range ofthe SDRs as the reporting currency. In the medium and long term, creation of a SDRssubstitution account is feasible, even though it may be difficult.