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UPDATE 1-Russia no early decisions on reserve currency
March 27, 2009 / 9:55 AM / 9 years ago

UPDATE 1-Russia no early decisions on reserve currency

(Adds Ulyukayev quotes, background)

MOSCOW, March 27 (Reuters) - The Russian central bank does not expect any decisions on a new global currency any time soon with the dollar remaining the main reserve unit, First Deputy Chairman of the central bank Alexei Ulyukayev said on Friday.

Reserve holders China and Russia sparked a heated debate ahead of the G20 summit in London next week proposing to use the International Monetary Fund’s Special Drawing Rights as a new global reserve currency.

“This is a very lengthy process... For a very long time the dollar will stay the reserve currency used for both private and state investment, including by central banks and sovereign wealth funds,” Ulyukayev told Echo Moskvy radio station.

Russia’s new currency proposal was spearheaded by President Dmitry Medevedev’s chief economic adviser and G20 sherpa Arkady Dvorkovich. Ulyukayev’s statement suggested there was no unity among Russian policy makers on the issue.

Developed nations want the G20 to focus on more urgent anti-crisis measures and Canadian Finance Minister Jim Flaherty said the reserve currency will not get much attention at the summit.

Russia wants to convene an international conference at government envoy level to discuss the currency creation some time after the G20 summit. It said it had the backing of other key emerging market economies on the issue.

Ulyukayev said Russia favoured the European Union’s approach to handling the global crisis over the one practiced in the United States and called for a more counter-cyclical regulation in the future.

“This is a mainstream way -- tougher regulation of those who have not been regulated yet -- like hedge funds, mutual funds, rating agencies,” Ulyukayev said.

“It does not make sense to guard two thirds of your territory and allow everyone in on the remaining third,” he added. (Reporting by Gleb Bryanski; Editing by Victoria Main)

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