The United Nations called on Tuesday for a new global reserve currency
to end dollar supremacy which has allowed the United States the
"privilege" of building a huge trade deficit.

"Important progress in managing imbalances can be made by reducing the
reserve currency country?s 'privilege' to run external deficits in
order to provide international liquidity," UN undersecretary-general
for economic and social affairs, Sha Zukang, said.

Speaking at the annual meetings of the International Monetary Fund and
World Bank in Istanbul, he said: "It is timely to emphasise that such
a system also creates a more equitable method of sharing the
seigniorage derived from providing global liquidity."

He said: "Greater use of a truly global reserve currency, such as the
IMF?s special drawing rights (SDRs), enables the seigniorage gained to
be deployed for development purposes," he said.

The SDRs are the asset used in IMF transactions and are based on a
basket of four currencies -- the dollar, euro, yen and pound -- which
is calculated daily.

China had called in March for a new dominant world reserve currency
instead of the dollar, in a system within the framework of the
Washington-based IMF.

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