July 9, 2009
Senior Fellow, CIGI
On the eve of their meeting with the G8, the G5 group of major emerging economies – Brazil, China, India, Mexico and South Africa – discussed the use of their own currencies to settle trade accounts among themselves, Indian Foreign Secretary Shivshankar Menon told reporters. According to Menon, the suggestion to explore this possibility came from Brazilian President Luis Inacio Lula da Silva.
Menon wanted to clarify that this does not mean the G5 having a new currency or alternative reserve currency. China, Russia, Brazil, France, and to a lesser degree India had expressed an interest in the talks between G5 and G8 leaders due on Thursday including debate on seeking long-term alternatives to the US dollar as the global reserve currency. Brazil and China have, of course, already established arrangements to settle a portion of their trade in their own currencies.
Read the rest of this entry »
July 8, 2009
Senior Fellow, CIGI
Some air has just been let out of the G8 balloon. Chinese President Hu Jintao has left the G8 Summit in L’Aquila Italy, to return home to deal with domestic unrest in China’s far western autonomous region, Xinjiang – leaving him unable to attend the Day Two meetings between the G8 and the “G5” emerging economies. Hu has left behind Dai Bingguo, State Councilor to represent China’s top leader.
Dai Bingguo is no slouch inside the Party command. In addition to being the government executive that is most responsible for overseeing the country’s foreign affairs, Dai is the director of the office of the Party’s powerful Leading Small Group for Foreign Affairs, and the office of the Party’s Leading Group on National Security. He is a key official in the new Strategic and Economic Dialogue between the US and China, and a point person on China’s relations with Africa and the Arab world. Dai Bingguo is clearly a safe pair of hands both inside the Party and government hierarchy. Read the rest of this entry »