The BRICS nations are set to discuss the feasibility of a common currency at the upcoming leaders’ summit. South African Minister of International Relations and Cooperation Naledi Pandor commented on BRICS currency discussions in an interview with Bloomberg Tuesday, stressing that “It’s a matter we must discuss and discuss properly.” The BRICS countries are planning to discuss the feasibility of introducing a common currency at their upcoming leaders’ summit, which will be hosted by South Africa on Aug. 22 in Johannesburg.
The BRICS nations, which comprise Brazil, Russia, India, China, and South Africa, have been ramping up their de-dollarization efforts, and a common BRICS currency is expected to help member countries shift away from the reliance on the USD. Nineteen countries have either applied to join the BRICS economic bloc or have expressed interest in joining, including Saudi Arabia and Iran.
South African minister also explained that the BRICS nations and a growing number of countries are saying: “Why can’t we trade in our own currencies? Why are we committed to trading through the dollar?”
Multiple people expect a common BRICS currency to erode the U.S. dollar’s dominance. A former White House economist said if the BRICS nations used only their common currency for international trade, “they would remove an impediment that now thwarts their efforts to escape dollar hegemony.” However, some believe that a BRICS currency poses little to no threat the to USD, including Bank of America and Dave Ramsey.
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