World Bank: A New World Order Emerging

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The World Bank noted that emerging markets now account for two- thirds of the world’s foreign exchange reserves–a reversal of the picture of the previous decade when industrialized countries owned the bulk of the reserves.

China has the biggest share of the global reserves among emerging markets at US$3 trillion.

“In short, a new world order with a more diffused distribution of economic power is emerging–thus the shift toward multi- polarity,” the World Bank report.

The rising role of emerging markets would eventually diminish the primacy of the US dollar in international trade and finance. Eventually, countries would keep almost equal shares of the US dollar, the euro and the renminbi in their foreign exchange reserves, the bank added.

“Over the next decade or so, China’s size and the rapid globalization of its corporations and banks will likely mean a more important role for the renminbi. The most likely global currency scenario in 2025 will be a multi-currency systm centered around the dollar, the euro, and the renminbi,” the report said.