South Africa’s Finance Minister on Common Currency and BRICS Summit
In an interview at the BRICS summit, South Africa’s Finance Minister Enoch Godongwana discussed the possibility of creating a common currency among the BRICS countries. However, he clarified that no one has proposed the idea, as it would require setting up a central bank and losing monetary policy independence. Here are the key points:
– No proposal for a BRICS common currency has been tabled, not even in informal meetings.
– Creating a common currency would mean setting up a central bank and relinquishing monetary policy independence.
– South Africa hosted this year’s BRICS summit, where the focus was on the use of local currencies in international trade.
– Godongwana highlighted that South Africa can trade with other countries using their respective currencies.
– The BRICS leaders emphasized the importance of encouraging the use of local currencies in international trade and financial transactions.
Hot Take: While the idea of a common currency among the BRICS countries might have been anticipated, it seems that no concrete steps have been taken in that direction. The focus instead has been on promoting the use of local currencies in international trade, which could potentially lead to a more diversified and balanced global financial system.
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