"The global economy is standing at a historical turning point. A more open and freer era than before has arrived. We need a currency that can represent all currencies and replace the traditional currency for transactions."
"The World United Savings was established for this purpose."
Loki spoke in front of the cameras of the media.
World United Savings.
Just from the name, it was not difficult to guess what this organization was for.
The originally peaceful weekend suddenly became restless because of this shocking news. In particular, the international financial community, with the news of the establishment of the World Reserve, set off a magnitude 3 earthquake, and even overshadowed the completion of the space elevator in South America.
Eyes from all over the world focused on the originally peaceful Manhattan Island for the first time. The world's major media outlets also carried out detailed follow-up reports on this matter at the first possible moment. At present, it was not clear what impact this would have on the global economy, because not many people thought they could succeed.
Even with the collective endorsement of Wall Street, it was impossible.
A unified currency was not something that could be achieved with a simple sentence. There were too many political factors involved. Even with the power of the entire Wall Street combined, it was impossible to achieve. Not to mention, the behind-the-scenes leader of the global economy, the Xin Federal Reserve, had not yet spoken.
Even if the World United Savings was to be established, it should not be led by the First B City Bank. Future Bank's qualifications were much higher than his.
However, soon, the further development of the matter made everyone's jaws drop.
On the first Friday after the announcement of the establishment of the World Reserve, the Xin Federal Reserve announced that it had reached a cooperation with the World Reserve on currency exchange issues …
Hua, Shangjing, in an apartment on the Second Ring Road.
It was New Year's Day, and it was rare for the family to get together for a meal.
On the TV, today's news was playing.
"The First B City Bank and more than 20 banks and investment banks, including Chase and Citigroup, established the World United Savings to cooperate with the central banks of various countries to issue a unified currency to strengthen free trade."
"It is reported that the Federal Reserve and the Xin Federal Reserve are the first to cooperate. Central banks of more than 20 Pacific Rim countries, including Xin, North America, and Canada, will join the unified currency system of the Pacific Rim led by the World Reserve. The contracting parties will pursue a free trade policy more open than the WTO and use 'world dollars' as the currency of settlement. "
"CCTV reporter reporting for you."
"The Americans are really dishonest. What new stuff did they come up with this time?" Wu Jianbin said with a smile as he looked at the American who was speaking to the reporter's microphone on TV.
"I'm afraid the Federal Reserve isn't created by the UA." Wu Changfeng glanced at the TV screen and smiled.
"Oh?"
"You see, the leader of the World Reserve Bank is B City First Bank. Do you know who this bank is?"
"I remember it's a joint venture between the US and Switzerland. Chase and Citigroup should be more famous than it." Wu Jianbin frowned.
"B City First Bank is a strategic partner of Future Bank, and the B City Consortium behind it is the emperor behind Wall Street. Do you understand what I mean?" Wu Changfeng smiled.
"You mean, the World Reserve is actually backed by Celestial Trade?" Wu Jianbin's eyes lit up and immediately reacted.
"You should ask this. Without the endorsement of Celestial Trade, would the First B City Bank dare to do this? Not to mention Boston, even the entire Wall Street combined wouldn't be enough. " After a pause, Wu Changfeng smiled and continued, "Jianbin, you're in the real estate business. Let me give you some advice."
"Haha, when did my brother start to care about business? Then I'll have to learn from you. "Wu Jianbin smiled and toasted him.
"Times are different. Don't always focus on the domestic business. Broaden your horizons."
"You mean the real estate business is no good? That's impossible. " Wu Jianbin shook his head and said with a smile, "The total M2 has increased by 80 times in 25 years, and the overissued currency has surpassed the combined money supply of the UA and the EU. The total economic output is less than one-third. If it weren't for the real estate business, hehe."
Wu Changfeng smiled and didn't speak.
He already said what he needed to say, and it was none of his business whether he believed it or not.
What's more, he really didn't care about his family's business.
It was a matter of course that a unified currency had benefits.
Even a layman in economics could see that a unified currency would help reduce transaction costs, reduce the risk of exchange rate fluctuations, promote trade, and increase the competitiveness of trade zones. But on the other hand, a unified currency would also have costs.
Take the eurozone as an example. A unified currency would lead to the loss of independence of a country's exchange rate and monetary policy, which meant that macroeconomic policymakers would voluntarily give up monetary policy and only use fiscal policy to control the macroeconomic economy. This would greatly weaken the ability of macroeconomic policymakers to respond to "asymmetric shocks".
Take Germany and Greece for example. The two countries used the same currency and had the same interest rate. However, Germany's industry was more developed than Greece's, the labor force was more educated, more productive, and the cost of industrial products was lower.
Now that the European Central Bank issued loans to both countries at the same time, Germany could use its advanced industry and productivity to create wealth far greater than Greece. Therefore, capital and high-quality labor came to Germany. Greece couldn't generate such a large income at all. It could only maintain the local economic state through welfare and encourage people to spend, which eventually led to the eurozone debt crisis.
However, it was undeniable that a unified currency would greatly increase the competitiveness of trade zones.
If the World Reserve created by Wall Street was not enough to make people fearful, then the participation of more than a dozen Pacific Rim countries such as Xin and the UA was enough to make other trade zones feel real panic.
Panic was the right word to describe it.
It would be a trade zone several times larger than the European Union, and its trade efficiency and competitiveness would be unimaginable by other trade zones.
To this end, the Kremlin had held two consecutive temporary meetings to discuss the World Reserve and its possible impact on the Russian economy. Putin, who was on a diplomatic visit to Europe, and the Russian Minister of Economic Development ended their trip early and returned to China to support the meeting.
On the other side, Shangjing was the same.
On the first weekend after the announcement of the establishment of the World Reserve, the Central Bank held a temporary working meeting to discuss the formulation of a new monetary policy to respond to the possible impact of the establishment of the World Reserve.
Whether willing or not, the establishment of the World Reserve affected everyone's nerves …
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