MOSCOW, Oct 13 (Reuters) - Russia and other countries are likely to continue gradual diversification of reserves, but a sharp move away from the dollar is unlikely in the medium term, Russian Finance Minister Alexei Kudrin was quoted as saying.
"Now, after the end of the 'fight to quality' period, the question about changing reserve structure arises again," Kudrin said in an interview with Russian Manufacturer magazine.
Russia has already reduced the dollar's share in its reserves, the world's third-largest, to less than 50 percent, and has called for less global dependence on the U.S. currency.
Along with China, it has called for discussion on the possibility of creating a new supra-national reserve unit, based on the International Monetary Fund's Special Drawing Rights.
But Kudrin said any such process would take years.
"In the short and medium term we can hardly expect sharp changes in the structure of currency reserves, because a sale of dollar assets would lead to a significant fall in their value. This is also true for Russian reserves," he said.
"Most likely there will be continued gradual diversification of reserves."
Russia's central bank has signalled that it is ready to add
other currencies to its $400 billion reserves, such as the
Australian
Emerging market currencies could also join the ranks of reserve units over time, Kudrin said.
"The Chinese yuan is now not a convertible currency. But in 10 years it could become convertible and reserve," he said.
"The Russian rouble, if it has not yet fully become a regional reserve currency, has the signs of being such." In recent weeks, the rouble has rallied strongly on firm oil prices and brighter economic prospects, prompting the central bank to regularly intervene in the market as part of a policy to stem excessive currency moves in either direction.
Kudrin and other officials have shrugged off suggestions that the recent rally poses a concern.
"The situation on the global energy market has a significant impact on the national currency. Now the external backdrop ... is positive for the country," he said.
"A weak currency increases risks of inflation, lowers the appeal of investments, leads to the preservation of the current ineffective structure of manufacturing," he said. (Writing by Toni Vorobyova; Editing by Victoria Main)