YEKATERINBURG, Russia – Russian President Dmitry Medvedev said Tuesday the world needs new reserve currencies.
Medvedev told a regional summit that the creation of new reserve currencies in addition to the dollar is needed to stabilize global finances.
Medvedev has made the proposal before. It reflects both the Kremlin's push for greater international clout and a concern shared by other countries that soaring U.S. budget deficits could spur inflation and weaken the dollar.
Airing it at a summit meeting underlined the challenge to U.S. clout.
Medvedev spoke at a summit of the Shanghai Cooperation Organization, which includes China and four Central Asian nations.
Later Tuesday he hosts a summit of the BRIC group of leading emerging economies — Brazil, Russia, India and China.
The Kremlin's top economic adviser said Russia may put part of its currency reserves in bonds issued by Brazil, China and India.
Arkady Dvorkovich said Russia could make the move if the other three nations reciprocate. Brazil, Russia, India and China are the members of the BRIC group of leading emerging economies.
Dvorkovich told a briefing Tuesday that the move could be part of efforts to diversify financial instruments.
He also proposed revising the way the International Monetary Fund's obligations are valued. He said the ruble, the yuan and gold should be part of a revised basket of currencies to form the valuation of the IMF's special drawing rights, or SDRs.