IMF’s View on BRICS Currency
The IMF was recently questioned about its stance on the proposed BRICS currency, which has been rumored to be a gold-backed currency. Julie Kozack, the director of IMF’s Communications Department, stated that the decision on currencies used in trade is up to the participating countries. However, she mentioned that there have been slow-moving trends in currency composition over time. For example, the share of the USD in global foreign reserves has decreased from 70% in 1999 to 58% in 2020.
Key Points:
– IMF views currency decisions as the choice of participating countries.
– No specific comments on a BRICS currency proposal.
– Slow-moving trends in currency composition have been observed.
– USD’s share in global foreign reserves has declined over the years.
– RT’s claim of a gold-backed BRICS currency is disputed by the vice president of the BRICS Bank.
Hot Take:
Creating a common BRICS currency is a long-term goal, as stated by the vice president of the BRICS Bank. However, the governor of Russia’s central bank acknowledges the challenges and difficulties in implementing such a currency. While the IMF does not have a specific comment on the BRICS currency proposal, it highlights the slow-moving trends in currency composition.
By
By
By
