The IMF warns that central banks may have to rethink what constitutes their reserve currency holdings

While the world has been digesting the COVID-19 Pandemic the IMF has been busy performing a study on multiple items this year!

So who is the IMF? The IMF (International Monetary Fund) was founded in 1944 at the Bretton Woods Conference in NH. Its headquartered in Washington, D.C. Its a collaboration of consisting of 190 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world while periodically depending on the World Bank for its resources.  

What is the IMF study premise? "Geopolitical shifts and technological revolutions are reshaping the global economy and the international use of currencies." Changes in the composition of reserve holdings can, at best, be described as glacial in pace.  However,  just as slow-moving glaciers can sometimes unexpectedly surge forward, the currency composition of reserve holdings has the potential to undergo a sudden, unexpected, and accelerated transformation.   My take is that the shifting sands of reserve currencies will be impacted by Digital Offerings as their learning curves (by individuals, Corporations and Countries) have been accelerated by the Pandemic.   Everyone is seeking a trading advantage to lead the next Century.

Does this plan involve an SDR (Special Drawing Right) Although an SDR was not mentioned in the article it must not be ruled out as the IMF has hinted it over the past few years. There is enough in the blog to allude to an SDR in my mind.

Summary - When an umbrella organization like IMF tease something this this blog its time to pay attention. Stay sharp my friends.