Russia, China, Others Urge Diverse Monetary System

YEKATERINBURG, Russia – Brazil, Russia, India and China 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 U.S. dollar.

The statement issued by the leaders from the so-called 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 they 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 like Brazil, Russia, India and China be given greater representation at major institutions like 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 longtime call by China and Russia, shared by other developing nations, for a bigger say in global affairs to counter what they see as the U.S. domination in global affairs.

The absence of any criticism of the U.S. dollar appeared to be a compromise by Russia. President Dmitry Medvedev said earlier Tuesday that the creation of new reserve currencies in addition to the dollar was needed to stabilize global finances.

Brazil will host the next summit of the BRIC meeting in 2010.

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