The report -- Euro, Dollar, Yuan Uncertainties: Scenarios on the Future of the International Monetary System -- launched at the World Economic Forum (WEF) on the Middle East, North Africa and Eurasia in Istanbul explores the critical uncertainties underlying the future international roles of the euro, the dollar and the yuan, the three major global currencies.
The euro-zone is plagued by a weak governance structure, fragmented sovereign debt markets and an uncertain growth outlook, the report said.
The United States must contend with a dim fiscal position, a persistently large trade deficit and a political system at risk of resorting to protectionism, it added.
Meanwhile, if the yuan is to rise to international significance, China will have to ensure continued growth, resolve systemic weaknesses in its financial system and address limitations stemming from its system of capital controls.
"Currency uncertainties are an increasing concern for businesses from the real economy due to the rapid integration of global trade and capital flows over the past decades.
This has made the links that connect different parts of the world economy ever more central to global prosperity while at the same time making the international monetary system, as well as the main international currencies that underpin this system, more vulnerable," Kristel Van der Elst, Director and Head of Strategic Foresight at the WEF, said.
"It is clear that studying possible evolutionary paths of the international monetary system has moved out of the realm of academic discussion and into the real world in a way financial services providers cannot afford to ignore," Christopher Harvey, Global Head of Banking and Securities at Deloitte Touche Tohmatsu, a Partner of the WEF initiative, said.