UPDATE 1-ECB's Bini Smaghi-emerging nations helping in crisis

(Adds quotes from Chinese central bank adviser, background)

PARIS, April 18 (Reuters) - Emerging market economies are helping the global economy in the current financial market crisis, European Central Bank Executive Board member Lorenzo Bini Smaghi said on Friday.

"Now in the current crisis, emerging countries are a source of strength in the world economy," he told a news conference on the sidelines of an economics forum closed to the public.

Developed economies, notably the United States, have slowed sharply as global financial market turmoil has created tighter credit conditions but many emerging economies are continuing to enjoy relatively robust economic expansion.

Still, an adviser to the Chinese central bank told the same news conference some of these emerging economies would benefit from introducing more flexibilty to their exchange rate systems.

"We need more flexibility in exchange rate regimes, policies," Fan Gang, who holds the academic seat on the People's Bank of China's monetary policy committee, told a news conference on the margins of an economics forum in Paris.

He was speaking of developing countries in general rather than of China specifically.

He said that profound changes to the international financial system were always difficult and costly but more minor modifications were always feasible.

"For example, more alternatives for the reserve currencies. If there are other currencies, like the euro, other currencies can play a role...that may be better for a more balanced global financial system."

Bini Smaghi said past financial crises had galvanised policy makers into reaching agreement on how to reform the international financial system and added: "Maybe this current crisis will lead to consensus." (Reporting by James Mackenzie and Swaha Pattanaik; Editing by Ron Askew)