Don't rely on dollar, Putin warns Davos summit

Published on 28/01/2009 23:41

VLADIMIR Putin, the Russian prime minister, yesterday called the world financial crisis a "perfect storm" whose destructive powers were multiplied worldwide.

Addressing government and business leaders at the World Economic Forum in Davos, Switzerland, he urged rivals to work together to find an solution.

He also cautioned against over-reliance on the US dollar as its reserve currency.

"Excessive dependence on what is essentially the only reserve currency is dangerous for the world economy; therefore it would be expedient to encourage an objective process for the emergence of several strong regional currencies in the future," he said.

Wen Jiabao, the Chinese premier, stressed enhanced US-China cooperation as way of tackling the global financial crisis, saying the meltdown has had a "big impact" on his country.

The mood of the conference had been one of unremitting pessimism over the global economy.

Lord Adair Turner, the chairman of the UK Financial Services Authority, raised the possibility of an international treaty-based financial watchdog.

He said banks will need to ensure that ample cash is always available for transactions and that "shadow banks, internet banks, mutual funds … and to a degree hedge funds" would have to be adequately regulated.