The current crisis provides an ideal opportunity for reform of the international financial and monetary systems, former Chinese central bank advisor Yu Yongding said on Wednesday.

Speaking at a roundtable discussion titled "The role of the United Nations and its member states in the ongoing international discussions on reforming and strengthening the international financial and economic system and architecture," Yu emphasized the importance of global governance reform, especially that of monetary and financial systems.

Instability and inequality in current international monetary systems need to be addressed, Yu said.

He stressed the importance of policy coordination on a global scale. He used the United States as an example. An increase in the US national debt and balance sheet of the US Federal Reserve has led to concerns in some quarters about the stability of the dollar as a store of value.

The low, near-zero return on holdings of dollars means that people are receiving virtually no return in exchange for the foreign exchange rate risk which they must bear.

"It is time for us to think about how to reform this international financial system," Yu said.

He believes that the current crisis provides an ideal opportunity to overcome the political resistance to a new global monetary system. He also stressed the importance of policy space for developing countries.

"Developing countries should be able to determine what sort of policy they should adopt according to their domestic situation. I think this is very important," Yu said.

He requested participants at the discussion not to view the idea of reform as "utopian."

"I want to emphasize that it is time for us to carry out reform of the international financial system. I think we should not miss this opportunity," Yu said.

The roundtable discussion was part of a three-day UN conference on the world financial and economic crisis and its impact on development, which began on Wednesday.

Yu is a former director of the Institute of World Economics and Politics, Chinese Academy of Social Sciences, and a former member of the Monetary Policy Committee, People's Bank of China.

He now serves as a member of the Commission of Experts of the President of the General Assembly on Reforms of the International Monetary and Financial System.

(Xinhua News Agency June 25, 2009)