BRICS Summit: Prioritizing Local Currency Trade Enhancement and Expansion
BRICS, composed of Brazil, Russia, India, China, and South Africa, will set to discuss enhancing trade in national currencies during its upcoming Johannesburg summit from Aug. 22–24.
Anil Sooklal, South Africa’s representative for BRICS relations, clarified that while talks of creating a common payments system and a technical committee for a joint currency are underway, the summit won’t address replacing the U.S. dollar as the global standard. Sooklal affirmed that the primary focus is on local currency trading, asserting that BRICS aims to expand its influence while recognizing the continued significance of the dollar. Currently representing over 42% of the world’s population, BRICS accounts for 23% of global GDP and 18% of international trade.
The New Development Bank (NDB) within BRICS targets a third of its lending to be in domestic currencies within the next few years. While the summit will address potential expansion, Sooklal highlighted that BRICS seeks not to compete with other groups, but rather, to foster a more inclusive and equitable global architecture in favor of the developing world.
Clever Robot News Desk 19th August 2023