Russia says that a common BRICS currency is unlikely to be feasible in the near future but the process of de-dollarization of the global economy is inexorably underway. Russian Press Secretary Dmitry Peskov added that many countries, including those that do not face sanctions, are gravitating towards using national currencies in trade settlements.
BRICS Currency and De-Dollarization
With the BRICS leaders’ summit on the horizon, there is a growing discussion about de-dollarization and the feasibility of a common BRICS currency. The BRICS nations comprise Brazil, Russia, India, China, and South Africa. The summit will take place from Aug. 22-24 in Johannesburg.
Dmitry Peskov, Press Secretary of the President of the Russian Federation, told reporters on Thursday that experts are discussing the possibility and feasibility of introducing a common currency, Russian state-owned news agency Ria Novosti reported (translated by Google’s AI program). “This is still a discussion process, it is clear that it will be stretched over time,” he was quoted as saying. The Kremlin spokesperson described:
In the near future, it is unlikely that this will be feasible, but the use of national currencies is already a reality that is growing on a global scale, and this practice is not only used by countries that face sanctions, but also by those that do not face them.
“The process of de-dollarization of the global economy is inexorably underway. Many countries are gravitating towards the trajectory of using national currencies,” he emphasized.
Last week, Russia’s deputy prime minister stated that the topic of a common BRICS currency could be discussed at the economic bloc’s upcoming summit. However, South Africa’s diplomat in charge of BRICS relations, Anil Sooklal, has insisted: “There’s never been talk of a BRICS currency, it’s not on the agenda.” Moreover, Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, also known as the BRICS Bank, recently clarified that the economic bloc has no immediate plan to launch a currency to compete with the U.S. dollar.
Recently, there have been rumors circulating regarding the BRICS economic bloc planning to launch a gold-backed currency. Numerous individuals believe that a common BRICS currency could erode the U.S. dollar’s status as the world’s dominant currency. However, there are hurdles to overcome. The governor of Russia’s central bank, for instance, has warned that establishing a BRICS currency would require the consent of numerous parties.
More than 40 nations have expressed their desire to become part of the BRICS alliance, with 22 countries already submitting formal applications. Additionally, Sooklal disclosed that South Africa has extended invitations to 69 leaders for the summit, encompassing all African heads of state and key leaders from prominent Global South organizations. However, he affirmed that no Western countries have been invited.
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