First BRICS Sherpa Meeting with 10 Member States
The inaugural BRICS sherpa meeting for 2024 has commenced in Russia, with representatives from 10 member states. Joining the existing members Brazil, Russia, India, China, and South Africa are five new nations: Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia.
Advocating for the Use of National Currencies
During the meeting, several countries including China, Russia, and Iran expressed their support for using national currencies in trade settlements. Iran’s sherpa, Mehdi Safari, even expressed hope for the future implementation of a common currency for the BRICS nations.
In addition to the emphasis on using national currencies, there was also a focus on strengthening the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA).
Discussion on a Common Currency
Last year, there were discussions about creating a common currency within the BRICS economic bloc. However, during the leaders summit in August 2023, the focus shifted to using national currencies instead of pursuing a common currency.
At the BRICS sherpa meeting, Russia’s Deputy Foreign Minister Sergey Ryabkov reiterated the group’s commitment to exploring ways to use national and local currencies in cross-border transactions to reduce reliance on the US dollar. China’s BRICS sherpa also emphasized the need to expand settlements in local currencies and strengthen payment system linkages.
Future Developments and Cooperation
China has announced the possibility of launching a BRICS AI development and cooperation center within its borders, further promoting financial cooperation as a strategic priority.
Hot Take: BRICS Seeks Stronger Financial Cooperation and National Currency Usage
The BRICS sherpa meeting held in Russia saw 10 member states discuss the use of national currencies and strengthening financial cooperation among the bloc. While the idea of a common currency was previously explored, the focus has shifted towards the use of national currencies in trade settlements. China, Russia, and Iran expressed their support for this approach. Additionally, China plans to establish a BRICS AI development and cooperation center. The meeting signifies the commitment of BRICS to reduce reliance on the US dollar and strengthen economic ties within the bloc.
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