The creation of a new international currency within the BRICS alliance is approaching fruition, with only the final nod from all member states pending. Sergey Glazyev, the former Russian minister, disclosed during an interview with TV BRICS that the development phase of the proposed currency is nearly complete. It now hinges on the collective political will of the BRICS nations, especially from India and China. Currently, the proposed currency has garnered support from three member countries, revealed Glazyev.
In order to launch this currency, we need the political consent of the BRICS countries, three of which have already expressed their support for the idea of introducing a new currency through their heads of state. We are waiting for the reaction of China and India.”
Sergey Glazyev, ex-Russian minister
Russia, taking the helm next year, could potentially steer the remaining BRICS nations towards agreement. Plans to organize an international conference to finalize the introduction of the currency are already on the horizon. This move underlines Russia’s commitment to consolidating support for the new currency.
The viability and attractiveness of the proposed currency
The envisaged currency promises enhanced stability, an allure not lost on potential adopters. Glazyev outlined that the currency’s foundation rests on a dual-basket system. It will be pegged to both the national currencies of BRICS members and a diverse portfolio of exchange commodities. This structure aims to offer a bulwark against devaluation, positioning the currency as a formidable competitor to established currencies like the US dollar, the pound, and the euro.
This innovation has been met with varying degrees of enthusiasm within the BRICS bloc. Russia and Brazil appear to be the frontrunners advocating for this new economic instrument. In contrast, South Africa approaches the matter with more caution, emphasizing the prevailing dominance of the US dollar.
The alliance’s stance indicates a strategic shift as member states explore alternatives to the traditional financial systems. Moreover, it reflects a collective pursuit to bolster economic resilience against global market volatility. Hence, the currency’s inception may represent a significant shift in the global economic order.
Glazyev, whose resume includes tenure as Russia’s foreign economic relations minister followed by 14 years in the State Duma, brings a wealth of experience to the dialogue on the BRICS currency. With technical specifications reportedly in place, it is the political climate that will determine the currency’s trajectory.
The proposed currency is not just a financial tool but a symbol of the BRICS countries’ growing influence on the global stage. It signifies the alliance’s readiness to craft a parallel economic narrative, one less dependent on Western financial hegemonies.
Additionally, the currency is positioned to be an attractive alternative for international settlements, potentially reshaping how trade and economic cooperation are conducted within the bloc.
