Reserve currency structure not to change in next 10 years-Kudrin.

UNITED NATIONS, June 25 (Itar-Tass) - The structure of reserve
currencies in the world will not change in the next 10 years, Russian Vice
Prime Minister and Finance Minister Alexei Kudrin told Russian journalists
on Wednesday. He is taking part here in the Conference on the World
Financial and Economic Crisis and its Impact on Development that is held
within the framework of the UN General Assembly.
"In the next 10 years we cannot speak about the considerable changes
in the structure of reserve currencies in the world," the RF vice prime
minister said. "Later this will depend on the efforts of countries aimed
at the creation of currency unions, and at the liberalisation of their
economies, as in the case with China," he added. "If China takes this path
and creates a convertible currency from yuan, then not earlier than in 10
years, but most likely later we will be able to speak about the creation
of a new reserve currency that will be gaining its position gradually,"
Kudrin noted.
He also believes that the "Chinese currency could become a
replacement" for the present world reserve currencies. "Maybe China will
be creating a currency union - we don't know this," the RF vice prime
minister continued. Kudrin also expressed the view that this may happen
"abroad within a decade." "Within the decade we will be able to forecast
stability of the use of the American currency, but further it will depend
on the steps and actions taken by countries, including the international
community aimed at the development of measures for a stable world currency
system," he noted.
Now the US dollar is the main reserve currency in the world, the euro
is second and then follow other currencies, the minister said. "It is not
so easy to change this structure," Kudrin stressed. "All settlements in
the world are made either in dollars or euro. Even settlements between
countries that do not trade with each other in dollars," the official
stated. In his view, this is the evidence that the US dollar is "a
currency convenient for use." "Of course, many depends on the stability of
the American economy, its overcoming the crisis and on with which
possibilities it will get out of the crisis," Kudrin said.
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