Countries with large reserves of foreign currency needed some international guarantees that would protect them from possible complications, according to British Prime Minister Gordon Brown. Speaking on Wednesday in the newspaper The Wall Street Journal in New York, Brown said that the world's reserves are now $ 7 trillion, but to maintain financial stability "requires only half that amount." "The rest could be used much more effectively for economic growth," - he stressed. "If we could create a worldwide insurance program that would guarantee these countries the right to sue in case of their currency will have difficulties, it would, in my opinion, could solve half the problems being talked about China and Russia", - said the British Prime Minister, commenting on recent proposals by Beijing and Moscow to establish an alternative U.S. currency. According to Brown, such a program could be implemented by the International Monetary Fund, the ITAR-TASS reported. Lead adviser to President Obama on Financial and Economic Affairs Paul Volcker said, "impractical" China's recent proposal to use so-called special depository receipts (SDRs), which is sometimes also referred to as "special drawing rights" as an international reserve currency. Speaking on Wednesday at New York University, former head of the U.S. Federal Reserve acknowledged the "one-sided nature of the current international financial system, which is far too dependent on the dollar." At the same time, Walker argued that the proposal to create "an entirely new international monetary system, where the role of the dollar was suddenly impaired, are not feasible."
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