India calls for higher status of currencies of emerging economies

Posted: September 23, 2011 in Currency & Treasuries
Tags: , ,

Xinhua- Chinese Global Times

Indian Finance Minister Pranab Mukherjee has called for higher status of currencies of newly emerging economies within the global financial system, as these countries are contributing a lot to global growth, reported The Press Trust of India Friday.

Mukherjee has also warned that there is a danger of “a currency war” if the ongoing economic crisis deepens, said the report.

Speaking at a press conference of finance ministers of BRICS countries Thursday at the headquarters of the International Monetary Fund (IMF), Washington, Mukherjee said such a currency war can be avoided through dialogue and not through competitive devaluations.

Mukherjee said the currencies used in BRICS countries should be widely appreciated and should be taken into account while determining the ingredients of special drawing rights (SDR) maintained by the IMF, as these nations’ contributions to global output and the economy is increasingly substantial, according to the report.

He said there are many other factors which ought to be taken into account to give a greater role to the currencies of BRICS countries, including free convertibility.

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