We knew that as soon as Venezuelan President Hugo Chavez started talking about introducing a new currency, the “sucre,” for the ALBA, I knew that it wouldn’t be long before we saw Russia get in on this new currency talk.  Instituting a BRIC currency is a very interesting idea, but it is hard to imagine any of these countries who would be willing to subjugate its central banking and budget/fiscal rules to foreign governments or collaborative decision making.  This is one of the reasons that some people think the euro won’t even survive much longer – having Greece manage budgets with monetary policy set by Brussels?  Probelms are bound to occur.

“I do not exclude that the Russian president’s idea about the creation
of a supranational currency and the rouble as a (world) reserve
currency will be discussed,” Medvedev’s spokeswoman, Natalya Timakova,
told reporters.

When asked if the summit would include a discussion of ways to
reduce dependence on the dollar, she said: “If one of the (BRIC)
participants raises this question then I do not exclude it” (a
discussion).

Russia has proposed the creation of a new world reserve currency
that would be issued by international financial institutions to reduce
reliance on the U.S. dollar.

Last 5 posts by Robert Amsterdam

• Who Helps Russia's Corrupt Get their Money Out? - November 23rd, 2009
• Sergei Magnitsky's Final Petition - November 23rd, 2009
• Energy Blast - Nov 23, 2009 - November 23rd, 2009
• Today in Russian Business - Nov 23, 2009 - November 23rd, 2009
• RA's Daily Russian News Blast - Nov 23, 2009 - November 23rd, 2009