BRIC summit to discuss financial system

The BRIC summit is expected to focus on reforming the global financial system and giving emerging economies stronger rights.

Before attending the summit, Brazilian President Luiz Inacio Lula Da Silva announced that the country would buy 10 billion US dollars worth of IMF bonds.

Russia also announced it would buy a similar number of IMF bonds. It also plans to cut the proportion of US dollars in its foreign currency reserve. Prior to this, China announced it would subscribe up to 40 billion US dollars worth of IMF bonds.

India is expected to follow the trend. Experts say that since the start of the financial crisis, the United States has adopted expansionary financial and monetary policies, which force emerging economies to bear part of the costs. These emerging economies now need to find ways to diminish their dependence on the US dollar.

Another hot topic at the summit is possible bilateral currency swaps. Both Russia and Brazil have expressed a willingness to expand cooperation with China on this issue.