Developing countries have been hit by the U.S. dollar’s loss of value in recent years. …

Motivated in part by needs for self-insurance against volatility in commodity markets and capital flows, many developing countries accumulated vast amounts of such (U.S. dollar) reserves during the 2000s. …

(… replacing the dollar with the International Monetary Fund’s special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies.) …

A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency. …

A new reserve system must not be based on a single currency or even multiple national currencies but instead, should permit the emission of international liquidity — such as SDRs — to create a more stable global financial system. …

Such emissions of international liquidity could also underpin the financing of investment in long-term sustainable development.