Central bank governor Zhou Xiaochuan's recent call to replace the US dollar with a new global currency is gaining traction within the international community.

Joseph Stiglitz, a Columbia University economics professor who heads a United Nations expert panel, said a reserve currency system based on an International Monetary Fund (IMF) unit instead of the US dollar, like what Zhou has proposed, could be phased in within a year.

Stiglitz's panel has issued a set of recommendations for global financial reforms, including a proposal for a new reserve system based on the IMF's special drawing rights (SDRs) - a basket of currencies consisting of the euro, yen, sterling and the US dollar.