World Monetary Integration: A Novel Conceptual Framework for a
Supranational Reserve Currency and International Settlement Reform

Lie Chun Pong

doi:10.46609/IJSSER.2026.v11i10.040

Title: World Monetary Integration: A Novel Conceptual Framework for a Supranational Reserve Currency and International Settlement Reform
Authors: Lie Chun Pong
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 11 Issue: 10 Publication Date: October 2026 DOI: 10.46609/IJSSER.2026.v11i10.040
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Lie Chun Pong Research Scholar
MLA 8 Pong, Lie Chun. "World Monetary Integration: A Novel Conceptual Framework for a Supranational Reserve Currency and International Settlement Reform." Int. j. of Social Science and Economic Research, vol. 11, no. 10, Oct. 2026, pp. 6064-6070, doi.org/10.46609/IJSSER.2026.v11i10.040. Accessed Oct. 2026. APA 6 Pong, L. (2026, October). World Monetary Integration: A Novel Conceptual Framework for a Supranational Reserve Currency and International Settlement Reform. Int. j. of Social Science and Economic Research, 11(10), 6064-6070. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i10.040 Chicago Pong, Lie Chun. "World Monetary Integration: A Novel Conceptual Framework for a Supranational Reserve Currency and International Settlement Reform." Int. j. of Social Science and Economic Research 11, no. 10 (October 2026), 6064-6070. Accessed October, 2026. https://doi.org/10.46609/IJSSER.2026.v11i10.040.
References [1] . Mundell, R. A. (1961). A theory of optimum currency areas. The American Economic Review, 51(4), 657–665. [2] . Ocampo, J. A. (2017). Resetting the international monetary (non)system. Oxford University Press. [3] . Triffin, R. (1960). Gold and the dollar crisis: The future of convertibility. Yale University Press. [4] . Lie, Chun Pong (2026). New paradigms shift in global monetary systems: “World Currency.” International Journal of Economics, Business and Management Research, Vol. 10, No.09; 2026.
ABSTRACT: This paper examines the structural limitations of the international monetary system and proposes alternative pathways towards global monetary integration. We consider how reliance on a dominant sovereign reserve currency can generate tensions between domestic policy objectives and international liquidity requirements, with particular attention to the Triffin dilemma, external imbalances, exchange-rate uncertainty, and the transmission of financial instability. Adopting a conceptual and institutional approach, our paper outlines two models of monetary integration. The first coordinates national currencies through currency-swap arrangements and a common currency basket. The second establishes a supranational reserve currency that progressively undertakes monetary functions currently performed by national currencies. Both models envisage stronger international monetary cooperation, supported by a global monetary authority responsible for reserve management, liquidity provision, and monetary coordination. The paper further proposes an international settlement mechanism drawing on an expanded role for Special Drawing Rights, under which collateral-backed access to international liquidity would seek to encourage adjustment in countries experiencing persistent external deficits. Our novel proposed framework aims to reduce currency-conversion costs, mitigate exchange-rate risk, and lessen dependence on any single national reserve currency. Our paper offers a conceptual framework for evaluating the institutional foundations and potential implications of a more integrated global monetary order.

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