an official picture with the G20 Finance Ministers and
Central Bank Chiefs during their meeting in Sao Paulo November 8, 2008.
Finance ministers and central bank governors from
the 20 most industrialised and important emerging economies
are gathered at the meeting to discuss global financial stability.
REUTERS/Marcos Issa/Argosfoto/Handout (BRAZIL).
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Brazil, Russia, India and China, or the BRIC nations, had agreed to cooperate with each other to boost trade and capital flow, according to Russian Finance Minister Alexei Kudrin, who is attending an annual meeting of the Group of 20 (G20) major industrial and emerging-market countries.
He noted that the financial crisis troubling developed countries was yet to hit bottom and predicted a recession for the United States and the European Union next year, whereas the economies of the BRIC nations would continue to expand.
Actually, Russia's economic growth in 2009 would be lowered to 3.5 percent, down from a previous projection of 5.5 percent. The price for the country's oil, called Urals, will average about $50 a barrel next year, down from a forecast of $95 a barrel a month ago. The average price will climb to $55 in 2010. If oil price really declines to $50 a barrel next year, then Rusia will have a current-account deficit in 2009. Declining oil prices may also affect the ruble. Oil prices will have an impact over it and, because of that, the current account, and the capital account as well. All these factors will have an impact on the exchange rate policy.
Rusia's Cental Bank sold a net $43 billion of dollars and euros in October, as investors withdrew cash from the country amid the nation's worst financial crisis since its $40 billion debt default in 1998. Reserves, the world's third-biggest, declined $2.4 billion to a revised $487 billion last week.
Finance ministers and central bank governors from the G20 nations began the two-day meeting in Sao Paulo Saturday. Founded in 1999 as an informal arena to facilitate dialogue between major industrial and emerging-market countries, the G20 accounts for 85 percent of the world's economy and about two-thirds of the world's population.
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Sources :
- Xinhua: Major emerging economies agree to jointly cope with financial crisis, November 9, 2008 10:05
Bloomberg: BRICs May Coordinate Response to Crisis, Kudrin Says (Update2) , November 8, 2008 15:45 EST
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