Resolution 3.

0
Forum: ECOSOC
Topic: The U.S dollar vs. Chinese Yuan as the Global Reserve Currency
Main submitter: Algeria and United States of America
Co-submitter: Brazil

PREAMBULATORY CLAUSES:

Considering the benefits of keeping the US dollar as the global reserve currency,

Noting that the US dollar is considered politically and economically stable,

Keeping in mind that the US dollar has been the global reserve currency for over 75 years,

OPERATIVE CLAUSES:

1. Calls upon People's Republic of China in terms of its currency, the Chinese Yuan. After
investigation, China has been held responsible for substantial currency manipulation-
which has significantly undervalued the U.S. dollar by as much as 40%, making Chinese
exports to the United States cheaper, and U.S. exports to China more expensive, than
they would be if exchange rates were determined by market forces;

2. Recommends the UN, IMF to take action, by removing the Yuan from the SDR
temporarily, until the following changes take place:

a) Not politicizing the Chinese Yuan and permit free trade with other countries.
b) Create a democratic political system of equity and toleration, by which the
government will grant access to the Chinese people to the internet and social
media as part of its socio-economic rehabilitation.
c) Decrease the debt-GDP ratio of China and increase job opportunities by 25% to
create a balance in debt-GDP ratio;

3. Requests China to regulate its imports and exports, by allowing the Yuan to flow without
any restrictions. By that, the People's Republic of China will avoid currency manipulation,
and achieve the "freely usable" criterion;
 4. Urges the Special Drawing Rights (SDR) & the international community to keep the US
dollar as the Global reserve currency as:
a) The US dollar is also kept by most, if not all, global central banks in
reserves and a very large amount of international transactions are done
with the U.S. currency.
b) The US dollar is a pillar of international trade, and the transition to another
currency would cause drastic changes that can severely damage other
national economies;

5. Stresses the need for the People’s Republic of China to restructure its economy to
liberalize it and create a ‘freely usable’ Yuan by:

a) abolishing wet markets and Article 3 of the Law of the People’s Republic of China
on the Protection of Wildlife 1988 (as the The Covid-19 pandemic is traced by
experts and the WHO to the Wuhan wet market, that alongside other wet
markets, which play a vital role in China’s food security);

6. Requests the SDR to remove the Chinese Yuan from the reserve currency basket,
until all its problems are solved to achieve the criteria required to become the Global
Reserve currency. The US dollar remains the safe option that's reliable for global trade.
The contractionary monetary policy of the US, alongside its stability and reserves,
makes it the safest option to keep as the Global Reserve Currency now especially at
such times of economic crises;