06/10/2009, 00.00
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Leaders of emerging nations for an alternative to the dollar

The leaders of BRIC (Brazil, Russia, India and China) will meet next week in Russia to discuss the global crisis, currencies and climate change. They aim to find a common ground to bring greater weight to September summit of the world’s 20 largest economies in the USA.

Beijing (AsiaNews/Agencies) –Next week in Yekaterinburg (Russia) leaders from Brazil, Russia, India and China (Bric) will meet to discuss the global crisis and development but also to discuss the possibility of finding an alternative to the US dollar in global currency.  President Hu Jintao will represent China at the summit which the government in Beijing has already cautiously defined as being “very important”.

He Yafei, deputy foreign minister has stated that “The BRIC countries share very similar viewpoints on a lot of international issues” underlining that strengthening communication and co-operation “is beneficial towards the development of emerging markets and raising the overall voice and influence of the developing countries”. Food security, energy security, climate change and development aid will be discussed but top of the agenda will be seeking a way out of the financial crisis.

The issue of reserve currency will also be addressed. He has clarified that “the reserve currency should be relatively stable”, a characteristic of the Yuan given that Beijing blocks all uncontrolled fluctuations.  Since December, China has signed currency swap agreements with at least five countries with a combined value of 650 billion Yuan” (circa 65 million Euros).

Experts maintain that the four countries aim to co-ordinate their positions for the third G20 meeting in the US in September. But they all want to promote their own currencies, and therefore it is not possible for them to agree to use the Yuan as a common reserve currency.

The 4 States represent 42% of the global population and according tot eh International Monetary Fund, in the last 2 years realised 10.7% of the global Gross Domestic Product and above all, count for a third of global economic development between 2006 and 2008.

After the summit the Russia, China and the 4 central Asian nations of the Shanghai Cooperation Organization, will meet, once again in Russia.

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