Russia To Call For New World Currency At G20 Talks

Russia yesterday published its list of demands for upcoming discussions at the next G20 talks, and top of the list was a new “superreserve currency”. Angered by the dominance of the US dollar as the global reserve currency, the Kremlin said in a statement issued on its website that the IMF should look into the creation of an alternative “accepted by the whole of the international community”.

But according to ‘The Moscow Times’, the idea would receive little support outside of Russia. “This is all in the realm of fantasy,” said Sergei Perminov, chief strategist at Rye, Man and Gore. “There was a situation that resembled what they are talking about. It was called the gold standard, and it ended very badly.”

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Venezuela’s Chavez Welcomes Russian Warships

Russian warships sailed into port in Venezuela on Tuesday in a show of strength as Moscow seeks to counter U.S. influence in Latin America. Russia’s first such deployment in the Caribbean since the Cold War is timed to coincide with President Dmitry Medvedev’s visit to Venezuela, the first ever by a Russian president.

Russian sailors dressed in black-and-white uniforms lined up along the bow of the destroyer Admiral Chabanenko as it docked in La Guaira, near Caracas, and Venezuelan troops greeted them with cannons in a 21-gun salute. Two support vessels also docked, and the nuclear-powered cruiser Peter the Great, Russia’s largest navy ship, anchored offshore.

Chavez, basking in the support of a powerful ally and traditional U.S. rival, wants Russian help to build a nuclear reactor, invest in oil and natural gas projects and bolster his leftist opposition to U.S. influence in the region.

He also wants weapons – Venezuela has bought more than $4 billion in Russian arms, including Sukhoi fighter jets, helicopters and 100,000 Kalashnikov rifles, and more deals for Russian tanks or other weaponry may be discussed after Medvedev arrives Wednesday.

Russia’s ambitions in Latin America, however, may be checked by global events. Both Venezuela and Russia are feeling the pinch of slumping oil prices, and their ability to be major benefactors for like-minded leaders is in doubt given the pressures of the world’s financial crisis.

The deployment of the naval squadron is widely seen as a demonstration of Kremlin anger over the U.S. decision to send warships to deliver aid to Georgia after its battles with Russia, and over U.S. plans for a European missile-defense system.

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