This blog has been here for a little over a year and half now. The archive on the right side of the blog contains every article written here, but it can be difficult to find specific articles on specific topics. This post will provide a list of the most popular articles we have written here related to the SDR used at the IMF and possible future scenarios for its use as a global reserve currency. This will make it easier for new visitors to find these articles which have generated a lot of interest from readers here. These are among the most popular articles (based on reader visits) here on the blog.
Jim Rickards has predicted that when the next major global financial crisis comes, the only "clean balance sheet" left in the world to deal with the crisis will be at the IMF. He has predicted that the SDR will be promoted as a replacement global reserve currency to the US dollar (perhaps with some gold backing or maybe not).
If you do some research on the SDR, you learn pretty quickly that while it is a somewhat obscure unit of value only used at the IMF and central banks right now, it has always had the potential to become something beyond that. If Jim Rickards forecast pans out, we will see the SDR become more prominent for sure.
Even if we do not get another major crisis, I do believe that it is possible that in the future we could the see SDR become some kind of global reserve currency. It might come in stages over time in a step by step process rather than suddenly as in a crisis. It might follow after regional areas adopt regional currencies (the African Union - AU as an example patterned after the Euro). It might even eventually be a digital version that people outside the IMF/Central bank system could use. It's also possible that the public might reject the SDR if we get another crisis and people lose confidence in the present global financial institutions. Time will tell.
If the SDR is some day used for this purpose, the more we know about it the better. It does not matter if you think it would be a great idea or if you hate the idea. There is still value in having an understanding of what the SDR is now and how it could be used in the future. With that in mind, here are links to the most popular articles we have written on this topic. The research for these articles comes both from available publications and some good sources with expert knowledge on SDR's.
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February 2014 - What is an SDR? and August 2015 - Primer on SDR's
Some basic info about the SDR
June 2014 Update on KlickEx - An Asset Backed Virtual Currency?
This article is a little dated now, but still has some important information in it
July 2014 - Jim Rickards in depth on the IMF and the SDR
Jim Rickards explains his forecast in detail in this interview
December 2014 - IMF Reforms and SDR's - Why Should Anyone Care about them?
Some basic info and why people should care about it
May 2015 - Dan Popescu on the SDR, Gold, and China
Thought provoking article from Dan Popescu
June 2015 - OMFIF - Chinese SDR Inclusion Could Trigger Global Assets Shift
A reader here sent me the link to this article
****June 2015 - Dr. Warren Coats (former IMF) - A Global Currency for a Global Economy ****
Examines Dr. Coats Proposal for a "Real SDR"
**** July 2015 - Converting the SDR into Something People Can Use ****
Talks about how the SDR might some day be used outside the IMF
**** August 2015 - Roadblocks to the SDR Becoming a Global Currency ****
Looks at the obstacles the SDR has to overcome to become a global currency
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If you have limited time, I would recommend the last three articles with the **** as the best ones to read. Right now, I don't know of anything that would suggest the SDR is about to become a global reserve currency any time soon. However, over time, I do think it becomes more likely that this will be possible. It may even be possible some day for a digital version of the SDR that everyone could use in daily life to emerge. Time will tell.
Added note: I will add this list on the right hand side of the blog as a new page so it will be easier to find these articles for anyone interested in this topic. Over time we can watch to see how the idea of the SDR as a global reserve currency fares and I will add new articles as new information becomes available.
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