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BRICS members warn of financial volatility

BRICS members warn of financial volatility

April 14th, 2011 in News

SANYA, China (AP) - The world's largest emerging economies urged tougher measures Thursday to guard against financial instability and said they back studies into expanding the use of Special Drawing Rights in the international monetary system.

A statement adopted by the five BRICS nations following their one-day summit in the southern Chinese resort of Sanya offers strong backing for steps to reform the international financial order to make it more diverse and representative.

The five - Brazil, Russia, India, China and South Africa - are pushing for a bigger voice for emerging economies in global financial affairs.

Special Drawing Rights is a quasi currency created by the International Monetary Fund that is used in dealings with and between member governments.

The joint communique, termed the Sanya Declaration, calls for continued reforms to the global financial system in coordination with the Group of 20 leading industrialized nations, which meets later this year to further changes to the global financial architecture. Without advocating major disruptions, the document makes clear the countries' conviction that the current system no longer adequately serves their interests.

Global economic governance, it said, "should be strengthened, democracy in international relations should be promoted, and the voice of emerging and developing countries in international affairs should be enhanced."

"We call for a quick achievement of the targets for the reform of the International Monetary Fund agreed to at previous G20 Summits and reiterate that the governing structure of the international financial institutions should reflect the changes in the world economy, increasing the voice and representation of emerging economies and developing countries," the statement said.