Putin: The world needs "the stability of global finance system."
Russian President Vladimir Putin has insisted on Saturday that the world needs "a multitude" of reserve currencies as a necessary condition for "the stability of global finance system."
"If we want to get rid of unnecessary derivatives and raise the discipline and stability of the global finance system, we must go over to a multitude of global reserve currencies," Putin said during a meeting in Vladivostok with the Business Advisory Council (ABAC) of Asia-Pacific Cooperation (APEC).
"If there is only one global reserve currency, the issuer of that currency will always be tempted to use it in its own interests in one way or another, and, at the end of the day, this will harm the issuer of that currency itself and violate fundamental principles of the global finance system," he said.
"It's a large amount of difficult work - but correct work, I'm sure, - to set up such currency centers. Especially here. Why? Because here the United States as the chief issuer is also involved in this work, and so it would be possible to find forms of joint action that won't destroy anything but would create new opportunities for the stabilization of the world economy," the president said.
He suggested using the currencies of some of APEC's member countries for the purpose.
However, he cautioned against doing harm to any nation in introducing new reserve currencies.
Putin visited five ABAC discussion sessions whose agendas focused on Russian priorities such as regional integration, logistic chains, food security, innovations and financial affairs.
The leaders of delegations from Mexico, Papua New Guinea, Malaysia and China were present at the financial discussion session.