Russia wants to start debate on new reserve currency at G20

MOSCOW, March 18 (RIA Novosti) – Russia is proposing that discussions into the possibility of creating a new world reserve currency are initiated at the upcoming G20 summit in London, a government source said on Wednesday.

“We fully agree that this is not the issue, which would enable us to get out of the crisis and cut costs. The main idea is to initiate discussions on this issue,” the government source said.

Russia earlier put forward a suggestion to the G20 summit which would see the IMF examining possibilities for creating a supra-national reserve currency, and also forcing national banks and international financial institutions to diversify their foreign currency reserves.

“We believe it is necessary to consider the IMF’s role in this process and also define the possibility and the need to adopt measures allowing for Special Drawing Rights (SDRs) to become an internationally recognized super-reserve currency,” Russia’s proposals read.

The G20 summit, involving advanced and emerging economies and international financial institutions, will be held in London on April 2, and will discuss the international community’s efforts to overcome the ongoing global financial crisis.

18/ 03/ 2009

Source: Ria Novosti

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