The BRICS countries are set to discuss the feasibility of a common currency at the forthcoming leaders ’ summit. “ It’s an affair we must discuss and discuss properly, ” a South African minister stressed, noting that a rising number of nations are saying “ Why can’t we deal in our own currencies? Why are we committed to trading through the dollar? ”
BRICS Currency to Be Discussed at Upcoming Leaders’ Summit
The BRICS nations are arranging to discuss the feasibility of presenting a common currency at their forthcoming leaders ’ summit, which will be hosted by South Africa on Aug. 22 in Johannesburg.
While allowing that she doesn't like “ preempting BRICS leaders ’ conversations, ” South African Minister of International Relations and Cooperation Naledi Pandor commented on BRICS currency conversations in an interview with Bloomberg Tuesday. She stressed:
It’s a matter we must discuss and discuss properly.
“ I don’t suppose we should ever assume the idea will work because economics is very difficult and you have to have regard to all nations, especially in a situation of low growth when you're emerging from crises, ” she continued.
The BRICS countries, which comprise Brazil, Russia, India, China, and South Africa, have been ramping up their de-dollarization efforts. A common BRICS currency is expected to support member nations move away from dependence on the USD. A Russian official newly spoke he expects an agreement on a BRICS currency this year. Nineteen nations have either applied to join the BRICS economic bloc or have expressed interest in joining, including Saudi Arabia and Iran.
The South African minister clarified that the BRICS countries and a growing number of nations are saying:
Why can’t we trade in our own currencies? Why are we committed to trading through the dollar?
Nonetheless, she cautioned “ South Africa has an internationally traded currency. Still, we hold a lot of debt in dollars so you know we've to approach this discussion responsibly. ”
Numerous people expect a common BRICS currency to erode the U.S. dollar’s dominance. A former White House economist spoke if the BRICS countries utilized simply their common currency for international trade, “ they would remove an impediment that presently thwarts their efforts to escape dollar hegemony. ” still, some believe that a BRICS currency poses little to no risk the to USD, including Bank of America and Dave Ramsey.
(Kevin Helms, Bitcoin.com, 2023)