Friday, April 25, 2025

CWE – Reforming the International Payment System

 

Open Letter

80 years after its creation, the reform of the international payment system has become urgent. The primary reason for this is the increasingly less acceptable and sustainable dominance of the dollar.

The dollar was able to assume the key role of international settlement currency in 1944 because it represented gold and was equivalent to it. However, the United States unilaterally terminated this representation in 1971, and since then the dollar has been backed not by gold, but by the printing press, the world's largest public debt, and the interests of the United States.

The fundamental problem cannot be solved by exchanging the dollar for another currency, but by returning to gold as the settlement "reserve currency" for international payments.

Gold's ability to store value, stability, and objectivity make it ideal for this role. The mechanism developed by the World Bank can ensure the smooth use of gold.

It is worth noting that the well-known fluctuations in the price of gold do not affect the outcome of trade transactions (if gold is more expensive, the importer would have to buy less gold for the transaction, although at a higher price).

The reform of the international payment system is inevitable. We expect that this message will reach a wide range of governments, banks, media, professional and civil organizations, decision-makers and experts, and will start a positive process for international cooperation and peace.

  

April 23, 2025

 

Todor Simeonov

Changing World Engineering

 




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