The Emerging Economies and Changing Prospects of the Multicurrency Global Order: Avenues and Challenges in Times Ahead

Abstract The coming years will see emerging economies like China, Brazil, India, South Africa as main potential holders for the global economic development along with similar pace development in Russia, Saharan Africa and Middle-East. This transformation will be experienced with changes in corporate, investment capacity, financial systems in each of the economies along with changes in the currency values and foreign reserves. The world order is already witnessing change in the currency capacity with ongoing ‘Dollar crisis – Yuan gains’. This is a strong indicator of the potentials of multicurrency system led by the new players and falling predominance of US Dollar as international currency. The World Bank predicts of either – status quo or a new multicurrency order, and this may be just the right time to be able to observe the changes and be able to see future avenues. The study reads the different time zones viz from Great Depression to World War II to current Recession in selected economies and the nature of effect on global currency orders & practices. The aim of the study is to contribute to the possibilities of multicurrency global economy. The study also underlines the complexities of multicurrency system in relation to SDR as established by the IMF and the challenges that the emerging economies may have to address to relating to the internationalization of the currencies.