world, still exists. when a national currency is used in pricing primary commodities, trade settlements and is adopted as a reserve currency globally, efforts of the monetary authority issuing such a currency to address its economic imbalances by adjusting exchange rate would be made in vain, as its currency serves as a benchmark for many other currencies. while benefiting from a widely accepted reserve currency, the globalization also suffers from the flaws of such a system. the frequency and increasing intensity of financial crises following the collapse of the bretton woods system suggests the costs of such a system to the world may have exceeded its benefits. the price is becoming increasingly higher, not only for the users, but also for the issuers of the reserve currencies. although crisis may not necessarily be an intended result of the issuing authorities, it is an inevitable outcome of the institutional flaws. ii. the desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit - based national currencies. 1. though the super - sovereign reserve currency has long since been proposed, yet no substantive progress has been achieved to date. back in the 1940s, keynes had already proposed to introduce an international currency unit named “ bancor ”, based on the value of 30 representative commodities. unfortunately, the proposal was not accepted. the collapse of the bretton woods system, which was based on the white approach, indicates that the keynesian approach may have been more farsighted. the imf also created the sdr in 1969, when the defects of the bretton woods system initially emerged, to mitigate the inherent risks sovereign reserve currencies caused. yet, the role of the sdr has not been put into full play due to limitations on its allocation and the scope of its uses. however, it serves as the light in the tunnel for the reform of the international monetary system. 2. a super - sovereign reserve currency not only eliminates the inherent risks of creditbased sovereign currency, but also makes it possible to manage global liquidity. a super - sovereign reserve currency managed by a global institution could be used to both create and control the global liquidity. and when a country ’ s currency is no longer used as the yardstick for global trade and as the benchmark for other currencies, the exchange rate policy of the country would be

. at may - end, the year - on - year growth rate of the aggregate financing to the real economy ( afre ) and m2 registered 8. 4 percent and 7 percent, respectively, both higher than the nominal gdp growth rate of 4. 2 percent in the first quarter of this year. the interest rate on new loans issued in may stood at a relatively low level of 3. 67 percent. concerning the structure of money and credit, the pboc gave full play to the role of macro - prudential policies and structural monetary policy instruments. we have initiated the central bank lending for sci - tech innovation and technological transformation, which aims to enhance financial support for sci - tech innovation and equipment upgrading and renovation. we have launched a package of policies to support the real estate sector, including lowering the minimum down payment ratios for individual's commercial housing mortgages, abolishing the mortgage floor rates, and cutting the interest rate on personal housing provident fund loans. we have also set up the central bank lending for affordable housing, to accelerate destocking commercial properties in a market - based manner. currently, outstanding structural monetary policy instruments register around rmb7 trillion, accounting for about 15 percent of the balance sheet of the pboc. the instruments were set to support key areas and week links of the national economy, such as the development of micro and small businesses and green transformation. regarding the transmission of monetary policy, we have made efforts in regulating market behaviors, making better use of existing low - efficient financial resources, enhancing the efficiency of fund use, thus smoothing the transmission of monetary policy. since the beginning of this year, we worked together with the national bureau of statistics to improve the accounting method of the quarterly value - added of the financial sector. the accounting method has been adjusted from reckoning based on the growth of deposits and loans to income - based, which more truthfully reflects the value - added of the financial sector, and weakens the impulses of some local governments and financial institutions to shoot up deposits and loans at crucial time points. meanwhile, after decades of operation as commercial and market - based entities, some financial institutions are still obsessive about scale expansion. they expanded their scale through undue and irrational competition, which was not supposed to happen. we regulated some market behaviors that are irrational or may undermine the transmission mechanism of monetary policy. for example, we promoted a balanced supply of credit, reduced and prevented the circulation of funds within the financial system,