Friday, April 15, 2011

BRICS Take Aim at Dollar

The five BRICS nations took another step towards cementing their global influence on Thursday, calling for a broad-based international reserve currency system "providing stability and certainty".

In a statement released at a summit on the southern island of Hainan, the leaders of Brazil, Russia, India, China and South Africa said the recent financial crisis had exposed the inadequacies and deficiencies of the current monetary order, which has the dollar as its linchpin.

"The era demands that the BRICS countries strengthen dialogue and cooperation," Chinese President Hu Jintao said.

The BRICS are worried about the long-term fate of the dollar because of America's large trade and budget deficits. They also begrudge the privileges that come with being the leading reserve currency - hence the call for a revamped system that is more stable.


CNBC

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