the Epitome weekly- Newsletter

Issue: 0923| Tuesday, June 16, 2009

New reserve currencies not in BRICs agenda

June 14, 2009

As leaders of Russia, China, India and Brazil attend their first summit in the Urals city of Yekaterinburg on Tuesday, a top Kremlin aide has said that new global reserve currencies would not be part of the agenda. "We will hardly be discussing the new reserve currencies," Sergei Prikhodko told reporters. "As far as practical issues are concerned, we will speak more about the possible ways to reform international financial institutions." Brazil, Russia, India and China are seeking to fortify their clout as the producers of 15% of global output by building up their BRIC grouping into a powerful world player.

Russia, holder of the world's third largest foreign exchange reserves, has called for the world to become less dependent on the dollar and suggested that the yuan and the rouble could become reserve currencies in the future. Concerns that dollar's role as the dominant reserve currency has contributed to global financial instability has been discussed by BRIC's top security officials, who met in Moscow last month to prepare the summit. Brazilian Strategic Affairs Minister Roberto Mangabeira Unger told Reuters last month the summit was due to discuss the role of the U.S. dollar, strengthening the G20 group, reshaping the world trade regime and reform of the United Nations . 

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