Thu, May 27, 2010
Business > Economy

Brazil suggests IMF include yuan, real as conversion currencies

2010-05-27 14:50:35 GMT2010-05-27 22:50:35 (Beijing Time)  Xinhua English

BRASILIA, May 26 (Xinhua) -- Brazilian Finance Minister Guido Mantega on Wednesday suggested the International Monetary Fund (IMF) include China's yuan and Brazil's real as conversion currencies for Special Drawing Rights (SDR) of the institution.

Mantega made the suggestion to IMF chief Dominique Strauss-Kahn, who was on a regular visit to the country.

"We believe that our currencies have already become important," Mantega said at a joint press conference after their meeting here.

Mantega said the suggestion was not meant to diminish the importance of the U.S. dollar but to increase resource options for the IMF.

Mantega also stressed the need to accelerate reform of the IMF to give more decision-making powers to developing countries.

"The emerging countries are under-represented in the Fund and the institution recognizes that," he said. "There is reform forecast for 2011, but we are trying to bring it forward to 2010. It is more than fair that countries adding resources to the IMF have their participation increased."

Strauss-Kahn said SDRs might have a major role in international reserves of the countries, although not in the short term.

He believed the dollar would remain the dominant currency, due to the size of the U.S. economy.

SDRs run between central banks and can be cashed with the endorsement of the IMF, but currently only four currencies can be converted: U.S. dollars, Japanese yen, British pounds and the euro.

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