Despite the direct criticism performed by leaders of BRIC nations, dollar bonds beat ruble, yean and real. BRIC power was a silent performance that didn´t manage to affect forex trades. Presidents Dmitry Medvedec (Rusia), Hu Jintao (China), Luiz Igancio Lula (Brazil) and Indian Prime Minister Mommohan Singh had called for a diversification on the monetary system.

Head representatives from all four nations met in the Russian city of Yekaterinburg for couple of hours; however their meeting was never likely to produce a real mark on international reform.

“It is not up to the politicians to determine which currency will be the world´s reserve currency,” explained Lutz Karpowitkz, currency strategist at Commerzbank. “At the end it is the market´s decision.”

Dollar bonds sold by China earned up to 11.4 percent in the past year, doubling the 4.6 percent for debt in yuan. Brazil´s currency bonds returned 3.6 percent while Russia´s dollar bonds showed a 1.9 percent loss.

Bonds

Bonds sold in dollars have outbid domestic debt in part because Russia and China managed ruble and yuan. Those two currencies denominated in U.S. currency can trade more freely, giving traders the security they can sell securities and get their money when they need it.

As a result limited foreign investment is done. Only Brazilian´s real is free-floating. India controls capital to protect the rupee.