Russian prime minister Vladimir Putin calls for end of dollar stranglehold

[Joanne98]

Russian prime minister Vladimir Putin has called for concerted action to break the stranglehold of the US dollar and create a new global structure of regional powers.

By Ambrose Evans-Pritchard in Davos

"The one reserve currency has become a danger to the world economy: that is now obvious to everybody," he said in a speech at the World Economic Forum.

It is the first time that a Russian leader has set foot in the sanctum sanctorum of global capitalism at Davos.

Mr Putin said the leading powers should ensure an "irreversible" move towards a system of multiple reserve currencies, questioning the "reliability" of the US dollar as a safe store of value. "The pride of Wall Street investment banks don't exist any more," he said.

For all his bluster, Mr Putin's bargaining power is weakening by the day. Russia's foreign reserves have fallen by 34pc since August to $396bn (£277bn) after months of capital flight and the collapse in the price of Urals crude oil to $45 a barrel. The rouble also fell to a record low yesterday after sliding for weeks in a controlled devaluation.

Mr Putin said: "We are witnessing a truly global crisis. The speed of developments beats every record, and the strategic difference from the Great Depression is that under globalisation this touches everyone. This has multiplied the destructive force. It looks exactly like the perfect storm."

http://www.telegraph.co.uk/finance/financetopics/davos/4376315/Russian-prime-minister-Vladimir-Putin-calls-for-end-of-dollar-stranglehold.html

[Doctor Cynic]

1. And replace it with Roubles?

[SergeyDovlatov]

2. some kind of system of global competing reserve currencies... here is the quote from the speech

"... Third. Excessive dependence on a single reserve currency is dangerous for the global economy. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model. ..."

from the speech: http://online.wsj.com/article/SB123317069332125243.html?mod=googlenews_wsj