INTERVIEW - Emerging economies to push US on dollar, security

U.S. 100-dollar bills are piled up after being counted at the Korea Exchange Bank (KEB) in Seoul in this October 2008 file photo.

BRASILIA (Reuters) - Brazil, Russia, India and China -- four emerging economic powers -- do not want to confront Washington, but they are moving to reduce dependence on the U.S. dollar, a top Brazilian official said on Thursday.

The four fast-growth BRIC countries, as they are known, account for roughly 40 percent of the world's population. On June 16, BRICs leaders will meet in Russia to exchange views on reforming the world's financial, trade and security institutions.

Nearly a decade ago, BRICs was little more than a term coined by investment bank Goldman Sachs to describe future economic powers. Today, they have a place on the global power map.

"The BRIC movement is gaining density," Brazilian Strategic Affairs Minister Roberto Mangabeira Unger told Reuters.

The objective of the BRICs was not to challenge Washington and its allies, but to create conditions for more economic and political pluralism in the world, Unger said.

"None of the four countries wants to antagonize the United States," he said.

One of the main themes at the BRIC summit will be the search for alternatives to the U.S. dollar as the global reserve currency. Several countries began worrying about the risks to their U.S. dollar reserves during the global financial crisis.

"There is wide-spread interest among the BRICs in replacing the dollar," Unger said.

While uncontrolled discussion of the matter could foment market volatility, the problem is that the genie is already out of the bottle, said Unger, referring to the ongoing debate.

None of the BRICs want a heavy-handed monetary technocracy, such as a global European-style bank, said Unger, a former Harvard professor.

Among the options being considered are a basket of reserve currencies or quasi-money such as special drawing rights managed with a minimum of red tape.

Following an agreement in principle with China last month to trade in their respective currencies instead of the dollar, Brazil is now looking at a similar deal with Russia.

"Russia told us they were very interested in having a similar arrangement with us," Unger said.

"What's probably going to happen there is that the two presidents will agree in principle ... and the two central banks will begin working (on a plan)," Unger said, referring to this month's meeting in Russia.

"Obviously the evolution in trade finance doesn't solve the problem of the reserve currency, but it does help open the way," said Unger, who admitted that even agreements on trade finance with China and Russia would take a while to be implemented.

Unger said other issues BRIC members wanted to discuss included climate change and nuclear disarmament.