BRIC may discuss supranational currency: Russia

BRIC may discuss supranational currency: Russia
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First Published: Tue, Jun 02 2009. 05 18 PM IST
Updated: Tue, Jun 02 2009. 05 18 PM IST
Moscow: The leaders of the world’s biggest emerging markets may discuss the idea of a supranational currency this month when they meet for a summit in Russia, Russian president Dmitry Medvedev’s spokeswoman said on Tuesday.
“I do not exclude that the Russian president’s idea about the creation of a supranational currency and the rouble as a (world) reserve currency will be discussed,” Medvedev’s spokeswoman, Natalya Timakova, told reporters.
When asked if the summit would include a discussion of ways to reduce dependence on the dollar, she said: “If one of the (BRIC) participants raises this question then I do not exclude it” (a discussion).
Russia has proposed the creation of a new world reserve currency that would be issued by international financial institutions to reduce reliance on the US dollar.
The leaders of Brazil, Russia, India and China, known by the BRIC acronym, are due to meet in the Russian city of Yekaterinburg on 16 June for the first summit since the international downturn struck their economies, which had driven global growth.
The BRIC states are trying to strengthen their clout as the producers of 15% of global output by building up the grouping into a powerful world player.
The term BRIC was coined in 2003 by Wall Street bank Goldman Sachs to describe how the four rising economies are likely to rival and overtake many of the West’s leading economies over the next half century.
A Brazilian official told Reuters last week that the summit would discuss the dominance of the US dollar as well as ways to reshape the world trade system and nuclear disarmament.
“The agenda of the BRIC summit is still being finalized but naturally questions connected with the world economic crisis and proposals from all the BRIC countries about ways to move out of the crisis will be discussed in very great detail,” said Timakova.
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First Published: Tue, Jun 02 2009. 05 18 PM IST
More Topics: BRIC | Supranational Currency | Rouble | Russia | India |