Putin advocates multiple reserve currencies

September 08, 2012 11:15 pm | Updated July 01, 2016 05:17 pm IST - MOSCOW:

Russia’s President Vladimir Putin has called for creating a system of multiple reserve currencies to strengthen global financial stability and reduce dependence on the U.S. dollar.

“If we are to slash the excessive number of derivatives, enhance discipline and stabilise global finances, we should promote multiple reserve currencies,” Mr. Putin said at a summit of the Asia-Pacific Economic Cooperation (APEC) forum in Vladivostok on Saturday.

He slammed the position of the U.S. dollar as the single reserve currency of the world. “If there is only one global reserve currency, the issuing country will always be tempted to use it in its selfish interests, which in the long run harms the issuer and violates the fundamental principles of the functioning of the world financial system.”

He said the rouble has the potential of becoming a regional reserve currency in the former Soviet Union. “Rouble can claim for the role of reserve currency . “The rouble is used more and more frequently in the settlements in the former Soviet republics”.

Russia in recent years has also signed agreements with India and China to use national currencies in bilateral trade deals. At their summit in New Delhi in March, the BRICS group of Brazil, Russia, India, China and South Africa signed two accords to promote intra-BRICS trade in local currencies.

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