Its time to reform international monetary system.

The US dollar, which served as an international reserve currency, should be supervised strictly by the IMF, because fluctuation and devaluation will bring huge risks to other countries. However, the monitoring is so weak that it has already sparked other countries' worries.

Even worse, the US Federal Reserve Board earlier this month said it would buy 300 billion US dollars in treasury bonds and US$750 billion in mortgage securities over the next six months. This move will no doubt lead to acceleration in the United States' money supply and result in inflationary recession.

Expert Zhuang Jian from Asia Development Bank said, although it is not realistic for other currencies to replace the US dollars in the near future, emerging markets can still make some attempts to make their own currency more international.

On Thursday, China signed a contract with Argentina to exchange 70 billion yuan, (US$10.24 billion) in their respective currencies for use in trade and investment, so that there is no need for each other's companies to buy dollars to pay for transactions. This move has been treated as a step to reduce reliance on the dollar.

On one hand, developing countries are growing fast and are seeking a way to pursue their rights; on the other hand, existing world financial system has restricted their rights, which hinders development of their economies.

The economic crunch is not only a disaster for the world economy, it is also an opportunity for countries to cooperate and reform global financial system. The international community should not miss the opportunity.

(Xinhua News Agency April 2, 2009)