BRICS Leader Signals Upcoming Discussions on Global Currency as Nations Reassess Dependence on US Dollar: Report
A group of nations, known as BRICS, are considering the feasibility of a new common currency that would allow them to disconnect from the US dollar. South African Minister of International Relations and Cooperation, Naledi Pandor, recently shared that members of BRICS, as well as other interested countries, are questioning the need to rely on the US dollar for transactions. They are asking themselves, “Why can’t we trade in our own currencies?”
While South Africa has an internationally traded currency, they hold a significant amount of debt in dollars, so they approach this discussion responsibly, weighing the pros and cons of a new currency carefully. Pandor emphasizes the importance of thoroughly debating this matter and not assuming the idea will work without consideration for all countries, especially in a situation of low growth as they emerge from crises.
It’s worth noting that Russia’s stance on a new currency may be more enthusiastic than South Africa’s. Russia’s Chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, recently revealed that negotiations on a new currency are at an early stage and that the currency could launch as early as this year.
More than a dozen nations have expressed interest in joining BRICS, including Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, two unnamed nations from East Africa, and one from West Africa. It will be exciting to see how this discussion develops and what the future holds for these countries’ currencies.
Clever Robot News Desk 11th May 2023
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