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Kostin backs new reserve currency

Posted by John Bonar on Monday, 07 June 2010 19:11 | Published in Banking & Finance

Kostin backs new reserve currency


Demand will rise for new global reserve currencies, possibly Asian, following the financial turmoil in the United States and Europe, the head of Russia's second biggest lender said on Sunday.

"Basically, the recent financial instabilities, they show, if not the complete failure of currencies like the dollar or euro, but also the threat which is existing in the present financial system we have," Andrei Kostin, Chairman and CEO of VTB Bank told reporters.

"I really feel that we'll have more and more demand to develop new reserve currencies, maybe in Asia. It very much depends on the further integration of these countries and their bilateral trade and relationships."

Kostin was speaking at a news conference ahead of the World Economic Forum on East Asia in Ho Chi Minh City, Vietnam's commercial hub.

He also said Russia and China are increasingly settling cross-border trade deals in their own currency, rather than US Dollars.

 



Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/06/05/bloomberg1376-L3KNQ80YHQ0X-2.DTL#ixzz0qCEzS0iy