BRIC demands more clout, steers clear of dollar talk

By Gleb Bryanski and Guy Faulconbridge

YEKATERINBURG, Russia (Reuters) - The leaders of the world's biggest emerging markets demanded a greater say in the global financial system on Tuesday at their first summit, but steered clear of any assault on the U.S. dollar's dominance.

The summit of the so-called BRIC nations of Brazil, Russia, India and China ended with a short statement by Russian President Dmitry Medvedev and a communique that demanded more power for developing nations in international financial institutions and the United Nations.

But it did not mention two key Moscow initiatives -- a smaller role for the dollar and a supranational reserve currency, although a Russian delegation source told Reuters that BRIC finance ministries and central banks were tasked to work on reserve currencies proposals.

"We are committed to advance the reform of international financial institutions, so as to reflect changes in the world economy," the BRIC countries said in a joint communique.

"The emerging and developing economies must have a greater voice and representation in international financial institutions," it said. "We also believe that there is a strong need for a stable, predictable and more diversified international monetary system."

In the run-up to the summit, the Kremlin said the agenda would include the need for more reserve currencies and the expansion of the International Monetary Fund's Special Drawing Rights, or SDRs.

But China -- which holds nearly $2 trillion in foreign currency reserves -- was silent, indicating little unity on any potential challenge to the greenback. With its massive holdings in U.S. dollars and Treasury bonds, Beijing does not want to see the value of its investments go up in smoke.

"Do not expect any short-term initiatives with respect to the dollar," Roberto Mangabeira Unger, Brazil's minister for strategic affairs, told Reuters after the summit.