30 Years since the Plaza Accord in 1985,the Chinese Renminbi, and Future of SDR in IMF
52 , 2017-08-24
I submitted in 1998, my Doctorate thesis on the Plaza Accord of 1985. This paper follows what happened since, and proposes an idea for the future international monetary system, under the present situation of the beginning of Year 2017, at the time when the new President of the United States Donald Trump criticizes Japan and China as the exchange rate manipulator in the world. 30 years have passed since the Plaza Accord, but its assessment is still divergent. I quote several authors views. But one thing is clear; during these 30 years, China has made a remarkable economic development, resulting in that China became the most important trade surplus country to the United States, although it was Japan at the time of the Plaza Accord, and as the matter of evidence, Chinese Renminbi became one of the SDR constituting currencies in 2016. Then I envision my idea on the international monetary system in the future. I propose to discuss the reform of the IMF SDR in the forum of G20, focusing, among 3 traditional attributes of an international currency, more on the numeraire aspect, than a means of payment or a reserve currency.