The world has more than enough reserves to help restore financial stability, British Prime Minister Gordon Brown said today, but a way needs to be found of unlocking the funds, according to Reuters. Speaking on the second leg of a three-continent tour to drum up support for the G20 summit in London next week, Brown said countries with high reserves, such as China, needed an insurance policy to protect them while encouraging them to lend. "We've got 7 trillion (dollars) of reserves around the world. Probably for the sake of financial stability you need maybe only half of these reserves. The rest can actually be far more effective in being used to get growth into your economies," Brown told an audience at the Wall Street Journal in New York. "If we could find an insurance policy which guarantees for these countries action in the event of their currency being in difficulty, that in my view would satisfy half the problem that is being raised by China and Russia." Brown did not offer more details on any such programme, but said it could be managed by the International Monetary Fund.
