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The BRICS bloc is now focused on expanding the use of the currencies of its members, according to the representative of one of them. The establishment of a single currency for the group is not an immediate task at this point in time, the diplomat indicated in an interview.
Wider Use of National Fiats of BRICS States to Precede Launch of Single Currency
Experts at BRICS are putting efforts into deepening ties between the economies and financial markets of its member states, with the aim of creating a common currency. However, its possible introduction is a medium-term and even longer-term task, South Africa’s ambassador to the organization, Anil Sooklal, told Russian media.
“Right now we are working on expanding the use of BRICS national currencies in mutual trade. BRICS has a corresponding agreement, and now we are implementing it in practice, so that the trade of the BRICS countries among themselves is increasingly based on our national currencies,” the top representative explained, speaking to the Tass news agency.
Sooklal emphasized that an increase in the use of national currencies in trade and investment should precede the creation of a single currency. Different scenarios related to trade and currencies are being considered at the moment, he pointed out and stated:
National currencies should be increasingly used by the BRICS states not only in trade, but also in investments and other transactions. Only this way can the foundation for the single BRICS currency be created.
Officials from the BRICS group of emerging economies — Brazil, Russia, India, China, and South Africa — are expected to meet in Cape Town, in early June. Anil Sooklal recently told Bloomberg that enlargement will be in the focus of their talks, with a total of 19 other countries showing interest in becoming members of the organization.
The idea to issue a common BRICS currency, which is supported by its current members who hope to use it to increase their influence and sidestep Western sanctions, has caused concerns in the United States that the dominant role of the U.S. dollar on the world stage will be undermined. The matter will be discussed at the next BRICS leaders’ summit in August.
Do you expect the leaders of BRICS nations to speed up the development of a single currency? Share your thoughts on the subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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