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BRICs Vow to Lessen Dollar Dependence

Countries voted to trade in their local currencies to reduce their dependence on the dollar and its volatility.

NEW DELHI — The BRIC countries want to lessen their dependence on the dollar.

Current BRIC countries Brazil, Russia, India and China — joined by those that want to become members like South Africa — on Thursday voted to trade in their local currencies to reduce their dependence on the dollar and its volatility.

In a meeting in Delhi that concluded Thursday, the five leaders of the countries — Brazilian president Dilma Rousseff, Chinese president Hu Jintao, Russian president Dmitry Medvedev, South African president Jacob Zuma and Indian prime minister Manmohan Singh — stated the move would help reduce transaction costs for all of the five countries, which account for more than 15 percent of global trade and 25 percent of the global gross domestic product.

The five leaders also proposed looking at the possibility of starting a new bank like the World Bank which could avoid the global powerhouse of the U.S. But the president of the World Bank, Robert Zoellick, said here that the World Bank itself may want to partner with such an institution if it did get developed.