Putin says new global reserve currencies would benefit U.S.
18/09/2009
Putin: New Global Reserve Currencies Wouldn't Harm US - Report LONDON (Dow Jones)--Russian Prime Minister Vladimir Putin has said agreement is needed on several global reserve currencies, and said such a move wouldn't damage the U.S., RIA Novosti reports Friday.
Speaking at an investment forum in the Russian Black Sea resort of Sochi, Putin said the imbalance of money supply in the U.S. compared with the rest of the world was one reason for the current financial crisis, Novosti reports.
"There is only one solution ? a long-term agreement on common rules of conduct or on several global reserve currencies," Putin said. "To my mind this poses no threat to the U.S. economy, which would only benefit from it in the future."
A Kremlin aide predicted on Tuesday the establishment of five or six currency unions based on new reserve currencies within the next 10 years.
Arkady Dvorkovich said talks were currently being held to establish currency alliances in the Middle East, Asia and Latin America.
A UN Conference on Trade and Development report released in early September said the dollar's role in international trade should be reduced by establishing a new currency to protect emerging markets from the "confidence game" of financial speculation.
It said UN member states should agree on a global reserve bank to issue the currency and to monitor the national exchange rates of its members.
Earlier this week an aide to Russian President Dmitri Medvedev said talk of replacing the dollar as international reserve currency was "irrational," but said a Several currencies, including the Chinese yuan, the British pound, the Japanese yen and the Swiss franc should be used to diversify the global currency system.
http://en.rian.ru/russia/20090918/156177687.html -London bureau, Dow Jones Newswires; +44 (0)20 78 42 9330; generaldesklondon@dowjones.com http://online.wsj.com/article/BT-CO-20090918-707719.html
