Brazil Wants to Include the Real as IMF’s Conversion Currency

Real, Brazilian currencyGuido Mantega, Brazil’s Finance Minister,  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 holding a meeting in Brazilian capital Brasília.

Mantega said the suggestion was not meant to diminish the importance of the US dollar but to increase resource options for the IMF. He also stressed the need to accelerate IMF reforms 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 SDR might have a major role in international reserves of the countries, although not in the short term. He believed the US dollar would remain the dominant currency, due to the size of the US economy.

SDR run between central banks and can be cashed with the endorsement of the IMF, but currently only four currencies can be converted: US dollars, Japanese Yen, British pounds and the Euro.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

1 Million Kids as Young as 5 Working in Brazil

Over a million children in Brazil between the ages of 5 and 13 work, ...

RAPIDINHAS

Is the US in the process of becoming a fascist nation with the blessings ...

Brazil: Paraní¡ Port Makes Life Easier for Exporters and Grows

The cargo throughput in the ports of Paranaguá and Antonina (in the southern Brazilian ...

Brasília’s Corruption Case Delayed. Main Witness Also Has Rap Sheet

Brazilian Durval Barbosa, the man who accused some 30 politicians and contractors of Brazilian ...

Has the Brazilian Judiciary Become a Mafia?

The Brazilian judiciary has historically been so rife with corruption and nepotism that one ...

US Representative Urges Brazil to Return Abducted American Child

On February 4th, 2009, U.S. Congressman Chris Smith from New Jersey state spoke before ...

Wal-Mart to Open 28 New Units in Brazil This Year

The Wal-Mart Brazil supermarket chain will invest 400 million reais (US$ 203.8 million) in ...

Brazilian Coach Joins US Academy Soccer Club

Florida-based Schulz Academy soccer club announced yesterday the launch of an additional training program ...

The Beast in on the Loose in Brazil’s Backlands

The beast was bored. The very-strong sun was hitting his head and leaving him ...

Brazilian born Francileudo plays for Tunisia national team

A Brazilian City Will be Rooting for Tunisia at World Cup

In a remote corner of the Brazilian Northeast, 51,000 people are not only going ...