UPDATE 1-BRICS joint action at G20 summit wishful thinking

Fri Jul 19, 2013 12:47pm EDT
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* Capital exodus raising alarm in emerging nations

* BRICS talk of joint action to offset stronger dollar

* Group still far from coordinating monetary/forex policy

By Katya Golubkova and Alonso Soto

MOSCOW/BRASILIA, July 19 (Reuters) - The leading emerging economies fretted on Friday about spillover effects from a bout of global financial turbulence but plans for joint action to contain the fallout stayed on the drawing board at a G20 meeting.

An exodus of capital from Brazil, Russia, India, China and South Africa prompted by an expected scale-back in U.S. monetary stimulus has raised fears about the health of their economies, which are already losing some of their lustre.

The reversal of the "monetary tsunami" - as Brazil called the flood of cheap money from developed nations - prompted the South American nation's president, Dilma Rousseff, to phone her Chinese counterpart in June to discuss "coordinated action" to offset the sharp appreciation of the U.S. dollar.

"All of the BRICS countries are worried about spillovers," Russian Finance Minister Anton Siluanov told reporters after hosting talks with the emerging markets caucus.   Continued...