Russia advises BRIC countries to buy bonds

Bric countries explore unconventional ways to reform the world financial system local time 16th afternoon, the first BRICS leaders met in Russia's third largest city Jekaterinburg opened the curtain.　　Although the formal agenda for the conference is only a few hours away, the global focus of this summit is no less than any previous G7 or G8 summit. As the world continues to fight the financial crisis and recession, the BRIC economies, which account for around 15% of the world's economy, are in high hopes.　　Diplomats said the meeting focused on issues such as the response to the international financial crisis, which could involve reform of the international financial system.　　To promote the reform of the international financial system the leaders of China, Brazil, Russia and India will mainly attend small-scale talks, large-scale talks, joint press conferences and work dinners 16th, according to the arrangements of the host country Russia. It was the first formal meeting of BRICS leaders.　　The leaders will exchange views on major issues such as the impact of the international financial crisis, the 20 summit process, international financial reform, food security, energy security, climate change, and the future development of the BRICS dialogue. In the day before the meeting, the Chinese Foreign Ministry director of the International division Hailong a special briefing at Jekaterinburg.　　He said that the meeting will focus on the response to the international financial crisis initiatives. Hailong said the meeting will focus on addressing the current international financial crisis, which may involve reform of the international financial system.　　He said that some countries have put forward the idea of establishing a super sovereign currency, which China believes is the starting point of safeguarding the assets of foreign exchange reserves, stabilizing the international monetary system and promoting the development of the world economy.　　Hailong said that China has always advocated perfecting the international monetary system, perfecting the regulatory mechanism for the issuance of reserve currency, keeping the main currency exchange rate relatively stable and promoting the diversification and rationalization of the currency.　　In an opening speech on 16th, Russian President Dmitry Medvedev said bluntly that the meeting would provide a unique opportunity for BRICS leaders to explore the "unconventional path" of reforming the world's financial system. "The global monetary system is unlikely to succeed if it is dominated by a single currency." "We know that this currency is the dollar now," said Mr Medvedev.　　He says there are risks to the existing currency system, including inflation risk. Russia advises the four countries to buy bonds. Medvedev reiterated his desire to push for the creation of a new super sovereign currency to challenge the dominance of the dollar.　　Russia also called on other members of the SCO to use their currency in bilateral trade to settle their accounts. Mr Medvedev said the existing reserve currency, including the US dollar, had not played its part, and a new supranational currency was taking shape. "We are expected to witness the creation of a super sovereign currency that will be used for international liquidation." Medvedev said at a press conference before the meeting, "Although the use of the volume will be limited." "But some analysts believe that the creation of a new sovereign currency in the short term canCan be difficult to use, there are many obstacles. Thus, strengthening the IMF's Special Drawing Rights (SDR) in the short term may be an option.　　Russian President Dvorkovic 16th said that Russia, China and some other countries ' currencies should be included in the SDR basket of currencies. The world's leading economist at Goldman Sachs, who first proposed the BRICS concept, said this week in an interview with the Shanghai Securities newspaper that the dominance of the dollar would be inevitable if the BRIC influence could overtake G7 in the next 20 years.　　Accordingly, the SDR may be more widely used, but only if more new constituent currencies need to be introduced.　　Dvorkovic also reported yesterday that, in response, Russia could use its reserves to buy securities issued by BRIC partners, and might suggest that other three countries adopt similar approaches to reduce their reliance on the dollar. Dvorkovic said the meeting will discuss the issue of raising the share of domestic currency in trade settlement and will also discuss the allocation of some of the country's reserves.　　For example, use the reserves of the four countries to buy bonds from U.S. and European countries, and to buy the financial instruments issued by the BRICS partner countries.　　Leading the new engine of global recovery? Experts say some of the relatively better emerging economies, led by China, have become the eyes of global investors, given that the global economy remains mired in recession and the prospects for recovery remain unclear.　　The meeting of the BRICS leaders also placed higher expectations on the four countries. The BRICS Monthly Review, published by Goldman Sachs, said the spread of the global financial crisis has hit four countries, for example, they are affected by the weakening of external investment, but the huge potential of the domestic market, relatively abundant foreign exchange reserves and a more stable financial system, so that the BRICS have the corresponding resilience to the crisis. The stronger domestic demand of the four countries has not only contributed to the growth of the country's economy, but also the impetus for bilateral or multilateral economic and trade development.　　In the current situation, the contribution of emerging economies, represented by the BRICS, to world economic growth is "more prominent" and one of the major trends in the world today, the monthly review report said.　　Just a few months ago, some feared that the "BRICS dream" might have been shattered by the crisis, but it turned out that the relative rise of the Brics seemed to be becoming more unstoppable after the severe shock of the crisis. According to Goldman Sachs ' latest forecasts, the global economy will grow by 1.1% and +3.3% in the next two years, respectively. The BRIC countries are expected to grow at 4.8% and 8% in the next two years, respectively. Such comparisons would be more pronounced if domestic demand were to be seen.　　Goldman Sachs expects global demand to grow by 3.4% in 2010, while the BRIC group, headed by China, is expected to grow 8.8%. Bric countries explore unconventional paths to reform the world's financial system "This means that the BRIC-led global growth pattern is more evident than in the past when the world economy has been growing at full speed." You know, we've just slashed the RussianRoss is expected to grow this year.　　O ' Neill said to our correspondent. The future is expected to hold regular analysts said the Brics are important emerging market countries and have important implications in international affairs. The strengthening of cooperation between the four countries is in line with the common expectations and interests of the international community.　　Therefore, the four countries should work together to broaden consensus and common interests and strengthen coordination and cooperation.　　Sources from the Russian side said that the countries interested in the BRICS summit after the continuation of the mechanism, the future will be held regularly similar summits. Russian Vice Foreign Minister Ryabkov said in advance that following the Jekaterinburg meeting, the BRICS leaders meeting will be held regularly in the future. He told a press conference: "After the Jekaterinburg summit, the BRICS leaders ' meeting will be held regularly in the future." In other words, we are here today as witnesses and participants, and we are not involved in one-off activities. The Brazilian president, Lula da Silva, said before the meeting that the Group of Eight was "dead". G8 is important, he says, but it cannot replace the BRICS, which account for 26% of the world's total area and 42% of the global population. According to the International Monetary Fund, the average economic growth rate of the four countries was 10.7% between 2006 and 2008. With the rapid economic growth of the four countries, their international influence is growing.