BRIC States to Discuss New Global Financial Architecture

World | June 16, 2009, Tuesday

Brazilian President Luiz Inacio Lula da Silva, Russian President Dmitry Medvedev, China's President Hu Jintao and Indian Prime Minister Manmohan Singh shake pose for a group photo at the Council of Heads of State meeting of the BRIC summit in Yekaterinbur

The leaders of the so called BRIC countries - Brazil, Russia, India, and China - agreed Tuesday to start working out the parameters of a new global financial "architecture".

The news has been announced by the Russian President, Dmitry Medvedev, as quoted by ITAR-TASS, after the end of the first BRIC summit in the Russian city of Yekaterinburg in the Ural Mountains.

Medvedev declared that the leaders the four states had agreed to have the Finance Ministers and Central Bank governors of their countries start discussing a new global financial "architecture".

He pointed out that new reserve currencies different from the US dollar must be created in order to stabilize global finances.

"No currency system can be successful if we have financial instruments denominated in just one currency," Medvedev said.

In his words, the BRIC states are going to have their finance officials come up with detailed proposals in this respect which then BRIC might realize jointly.

Medvedev also made it clear he had been satisfied with the results of the first ever BRIC summit, and described it as a historical event.