Formation of a global multicurrency financial system

Discussions and reflections on the end of the Western domination era and the beginning of the transition to the new world order have intensified recently. Over the past thirty years, the world has changed significantly, resulting in the shift of the world's center power from developed to developing countries. The geopolitical and geo-economic changes of the world landscape determine the search of the guidelines of a global monetary reform. The transition to a multipolar international monetary system is a hot topic of expert discussions. The aim of the paper is to investigate the processes of the formation of a multicurrency global financial system, to discover the main factors and implications of these processes, as well as to explain the challenges of global financial transformation for the currency policy in Ukraine. The methodological basis of the paper is a set of economic and financial theories and scientific concepts based on the use of systematic, dialectical, comparative, analytical, empirical and structural methods. This paper investigates the processes of the transformation of the global monetary system and its transition to a multicurrency system, regional cooperation in the monetary sphere and the phenomenon of emerging economies' currency internationalization. The author makes the conclusion that, in the medium and long term, the world's multipolarity will raise the role of other currencies in the world multicurrency system, while the dollar, Euro and Chinese Yuan will compete with each other. Practical results of the study, namely the recommendations about harmonization of the structure of foreign exchange reserves in Ukraine, can be introduced into the ongoing activities of the executive and the legislature. The paper is written within the framework of the research project on "Impact of the global financial transformations on the currency and financial system of Ukraine".