Russian Official Discusses Possible BRICS Currency at Upcoming Summit
– Russian Deputy Prime Minister Alexei Overchuk suggests that the creation of a basket of BRICS currencies may be discussed at the upcoming summit.
– Overchuk believes that the leaders may task expert bodies with exploring the matter, acknowledging the complexity of the issue.
– However, South Africa’s diplomat in charge of BRICS relations, Anil Sooklal, denies that a BRICS currency is on the agenda.
– Leslie Maasdorp, vice president of the BRICS Bank, clarifies that there are no immediate plans to launch a currency to compete with the U.S. dollar.
– The focus of the BRICS bloc is on de-dollarization and promoting the use of national currencies for trade settlements.
Rumors and Challenges Surrounding a BRICS Currency
– Speculation suggests that the BRICS group may unveil a gold-backed currency at the summit, which could potentially challenge the dominance of the U.S. dollar.
– However, obstacles lie ahead, with Russia’s central bank governor cautioning that a BRICS currency would require the consent of multiple parties and could face implementation challenges.
Interest in BRICS and Summit Invitation
– Over 40 countries have expressed interest in joining the BRICS group, with 22 nations formally applying.
– South Africa has invited 69 leaders to the summit, including African heads of state and leaders of major Global South bodies, but no Western countries have been invited.
Hot Take: While the possibility of a common BRICS currency is uncertain, the focus on de-dollarization and promoting national currencies for trade settlements reflects a growing trend among emerging economies to reduce dependence on the U.S. dollar. The BRICS bloc continues to attract interest and expand its influence on the global stage.
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