The Research On The Reform Of International Reserve System

The international community has jointly acknowledged that what can be used as the common means of payment and liquidation for all countries is the key issue in the establishment of the international monetary system.Certain international means of payment and other assets that can be converted into such means,being stocked to cope with unexpected needs,finally become international reserve assets.The international reserve system refers to the legal institutional arrangements for the formation and collection of international reserve currencies or international reserve assets under an international monetary system.Key issues for this arrangement include the determination of the central reserve currency and the determination of the rights and obligations between the freely tradable currency and its issuing State.After the outbreak of the financial crisis in 2008,the voice of reform in the international monetary field sounds improvement.The reform of the international reserve system is an important part of the reform of the entire international monetary system.From the perspective of international monetary law,the “disorder ” situation presented by the dollar-dominated international reserve system under the Jamaican system is an important factor in inducing the financial crisis and leading to a long-term downturn in the world economy.In October 2016,the RMB joined the currency basket and became a new force in the field of international reserve currency.This move marks a major innovation in the international reserve currency pattern.A series of studies and discussions on the reform of the international reserve system have revived again.The current international reserve system is mainly based on the International Monetary Fund Agreement,and it presents many shortcomings including: Too vague rule system,the lack of the standard currency system,the absence of the responsibility system for spamming money,the imbalance of the distribution of rights,and the Invalid IMF governance.Behind the institutional dilemma reflects the profound contradictions in the field of international monetary law.It should be noted that the international monetary and financial markets are regulated by economic laws,but it does need an effective legal system to provide a framework for cooperation in global monetary activities.The current international reserve system is in urgent need of reform to correct the long-standing "disorder" status and achieve fairness in the international reserve governance mechanism.Specifically,a series of measures can be taken to promote the reform process,such as perfecting the rules system,completing the standard monetary system,establishing the accountability mechanism for spamming money,strengthening the protection for developing countries,and improving the governance capacity of the IMF.