A lot of work still remains ahead in the world's efforts to build a fair, efficient global financial system, Chinese and Russian experts say.
Experts from Beijing and Moscow on Thursday held a video conference to discuss the possibility of creating a "supra-national reserve currency."
Creating a "supra-national reserve currency" suggested by China on the eve of the London G20 summit is a long-term idea, said Chen Daofu, an expert with the Development Research Center of the State Council of China.
In the short term, the current U.S. dollar-dominated global currency system cannot be easily changed, he said.
The system, however, has congenital flaws, Chen said, pointing out such issues as no restrictions on the issuance of dollars and the great risk of dragging the entire global financial system into turmoil when the dollar fluctuates drastically.
The idea to use a national currency to replace another cannot fundamentally rectify the flaws, he said.
A feasible measure to stabilize the current global currency system is diversifying the reserve currency, said Guo Hongyu, a finance professor with the University of International Business and Economics of China.
China is speeding up the regionalization of the Chinese yuan. China and Russia are gradually enlarging the scope of settlements in bilateral trades by using the yuan and Russian ruble, she said.
Mutual cooperation or integration of currency can only be brought into discussion when major currencies have similar influence and strength, she added.
Vladislav Inozemtsev, founder and director of the Center for Post-Industrial Research in Russia, believes that either the ruble or the yuan is eligible to become a regional currency.
However, because both currencies still account for a small share in international trade settlement, they cannot be used as global currency now, he said.
Mikhail Khazin, president of the Neocon consulting company, said that to create a "supra-national reserve currency" is not merely a financial issue, but also involves accountability for the global economy.
He suggested setting up a new global economic pattern, in which every economic entity can adequately allocate profits, ensure sufficient resources and realize relevant duties and rights.