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Bric states call for more diversified monetary system

Bric states call for more diversified monetary system
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First Published: Tue, Jun 16 2009. 10 25 PM IST
Updated: Tue, Jun 16 2009. 10 25 PM IST
Yekaterinburg, Russia: Brazil, Russia, India and China, the Bric countries, on Tuesday called for a more diversified international monetary system, but wrapped up their first full-fledged summit by avoiding any explicit criticism of the world’s dominant currency, the US dollar.
The statement issued by the leaders from the Bric nations contained no reference to developing new reserve currencies to complement the dollar, which Russia had called for at a separate event earlier in the day. Instead, the cautious wording appeared to reflect China’s concerns that any anti-dollar statements could erode the value of its currency reserves.
“There is a strong need for a stable, predictable and more diversified international monetary system,” the final statement said.
A reformed financial and economic architecture should be based on “democratic and transparent decision making and implementation process at the international financial organizations,” it said.
The Bric nations urged the international community to keep the multilateral trading system stable, curb trade protectionism and stressed a commitment to “advance the reform of international financial institutions to reflect changes in the world economy”.
The group repeated long-standing calls that emerging economies such as Brazil, Russia, India and China be given greater representation at major institutions such as the International Monetary Fund or the World Bank.
The document called for broader cooperation in the energy sphere, diversifying energy resources and energy transit routes.
It also underlined support for a “more democratic and just multipolar world order based on the rule of international law, equality, mutual respect, cooperation, coordinated action and collective decision making of all states”.
The wording reflected a long-time call by China and Russia, shared by other developing nations, for a bigger say in global affairs to counter what they see as the US domination in global affairs.
The absence of any criticism of the US dollar appeared to be a compromise by Russia.
President Dmitry Medvedev said earlier on Tuesday that the creation of new reserve currencies in addition to the dollar was needed to stabilize global finances.
His chief economic aide, Arkady Dvorkovich, said Russia could consider investing its reserves not only in the US and European countries but also in the financial instruments traded by Bric states.
Brazil will host the next summit of the Bric meeting in 2010.
AFP contributed to this story
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First Published: Tue, Jun 16 2009. 10 25 PM IST
More Topics: Bric | Brazil | Russia | India | China |