Ministry of Economic Development of Russia Expects No ‘Quick Breakthroughs’ on a Common BRICS Currency
The Ministry of Economic Development of Russia does not expect rapid decisions or announcements on issuing a common currency of the BRICS bloc, integrated by Brazil, Russia, India, China, and South Africa.
- Creating a common currency for the BRICS bloc is not expected to happen quickly.
- The BRICS group’s economy accounts for about 25% of global GDP.
- The European Union debated the idea of the euro for years before its issuance.
- Leaders of the BRICS bloc are pushing for the de-dollarization of trade.
- Complementary solutions like a basket of currencies or an existing fiat currency could be considered.
In the current geopolitical situation, payment systems are affected by political circumstances, with Western countries exerting influence on them. This is a concern for BRICS countries and other nations.
Hot Take:
While the Ministry of Economic Development of Russia does not expect a quick breakthrough on a common BRICS currency, the push for de-dollarization and alternative solutions show a desire to reduce vulnerability and increase payment options within the bloc. It is clear that the process of creating a new currency takes time, as seen with the euro in the European Union. However, exploring complementary solutions like a basket of currencies or utilizing existing fiat currencies could provide a step towards achieving the goal of reducing dependence on the US dollar.
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