Russia challenges dollar, China offers loans

"Least of all now we need shocks at the currency markets," he said. "Any additional shocks are bad during the crisis. No one wants to bring the dollar down."

He added, however, that the creation of new reserve currencies should help distribute global wealth more fairly and also encourage economic leaders to pursue a more balanced economic policy.

The talk about the new global currency has been prompted by concerns in China and Russia that soaring U.S. budget deficits could spur inflation and weaken the dollar, debasing the value of their holdings.

"If we have more reserve currencies, we will be able to insist and even demand a more responsible approach by countries which issued the global currencies," Dvorkovich said. "Those who issue reserve currencies today don't always take the interests of the global economy into account."

Officials from Russia, China and Brazil have said in recent weeks that they would invest in bonds issued by the International Monetary Fund to diversify their dollar-heavy currency reserves.

China is Washington's biggest foreign creditor, holding an estimated $1 trillion in U.S. government debt.

The Treasury Department on Monday said that foreigners, including China and Japan, the two biggest buyers of U.S. government debt, cut their Treasury holdings in April.

Russia's Deputy Foreign Minister Sergei Ryabkov said that the BRIC summit was "not an attempt to compete with anyone."

While BRIC members share a desire to play a bigger role in creating a new global financial order and counterbalancing the West and Japan, their often contradictory interests would make forging a common policy a difficult task.

China and India have sizable labor resources, while Russia and Brazil are rich in natural resources. China is a major consumer of natural resources, unlike Russia and Brazil, which are top producers. While China wants lower oil prices, Russia and Brazil would seek higher oil prices.

Chinese leader Hu Jintao says China will extend a $10 billion loan to a regional group that also includes Russia and four Central Asian states.

The move adds muscle to China's role in the Shanghai Cooperation Organization, which it dominates along with Russia.

Hu spoke at a summit of the grouping in Russia. He said the loan is intended to shore up the struggling economies of its members amid the global financial crisis.

The Shanghai group includes impoverished Tajikistan. Kyrgyzstan, which borders China, also is poor and has few lucrative resources.

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