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Leaders of Brazil, Russia, India, China, and South Africa (BRICS) are demanding a revamp of the world’s monetary make-up, according to Reuters.At the meeting in China, the five countries outlined their demands for what they want from the world’s current economic ruling class.
- Let the BRICS lead the IMF and World Bank, not just the EU and U.S..
- IMF’s SDR to to be broadened. BRICS members were light on specifics for the role of the yuan.
- A proposal to use local currencies, not dollars, to establish mutual credit lines at development banks. President Wu said: “Trade settlement in local currencies among the five countries will promote trade and investment liberalization. It will lead to even closer business and trade ties among these five countries.”
- Increased regulation of the commodities derivatives market. In a joint statement, they said: “We call for more attention to the risks of massive cross-border capital flows now faced by the emerging economies”
- A Russian developed proposal for mutual assistance in case of nuclear accidents and stressed ‘strict adherence’ to nuclear safety rules.
- Medvedev planned bilateral talks with Chinese President Hu Jintao after the summit on Thursday and wants to trade energy for investment in Russia. This comes after China and Brazil signed commercial agreements on Tuesday, including, a $1.5 billion offer from Chinese companies for Brazilian air crafts.
And some controversial topics they avoided:
- The yuan. Recently Brazil has been increasingly frustrated with Chinese trade practices that involved pegging the currency to the dollar to keep Chinese exports cheap.
- A proposal to include Indonesia in BRIC group.
Indian prime minister Manmohan Singh has invited BRICS leaders to India for the 2012 summit.