China, Russia Woo Central Asian Countries With Bailout Cash
Posted: Tuesday, June 16, 2009
"China will provide $10 billion of credit support to help SCO member states counter the impact of the international financial crisis," Hu said. Russia in February pledged $7.5 billion to a regional fund it created to help Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.
Russian President Dmitry Medvedev is hosting back-to-back summits of developing economies in Yekaterinburg, in the Ural Mountains that divide Europe and Asia, as he seeks to lessen the world economy's dependence on the U.S. dollar. Medvedev and Hu will hold talks later today with Indian Prime Minister Manmohan Singh and Brazilian President Luiz Inacio Lula da Silva in the first summit of so-called BRIC nations.
Hu called for greater coordination among Shanghai members on monetary policy, including regular meetings of finance ministers. China owns the world's largest dollar stockpile, almost $2 trillion, while Russia is third with more than $400 billion.
Medvedev today reiterated Russia's intention to push for the creation of a "supranational currency" to replace the U.S. dollar and encouraged China and the other Shanghai group members to use each other's money in bilateral trade.
"There can be no successful global currency system if the financial instruments that are used are denominated in only one currency," Medvedev said. "Today this is the case and the currency is the dollar."
Full Article : bloomberg.com