- Officials from BRICS nations confirm that the economic bloc is not considering a gold-backed common currency.
- South Africa’s BRICS Ambassador, Anil Sooklal, also stated that the economic bloc has no intention of challenging the USD.
Over the last few months, there’s been a major talk all around that the BRICS nations are working on a gold-backed currency to end the dominance of the USD in the global market. However, India’s Foreign Secretary Vinay Mohan Kwatra has cleared stating that no such development is currently underway.
Indian news outlet Mint reported that the economic bloc is not focusing on having a common currency. Speaking to the publication, Kwatra said:
“The substantive part of trade and economic exchanges and discussions that have been a part of BRICS discussions have so far, in a major way, focused on how to increase trade in respective national currencies which … is considerably different from a common currency concept.
You would know that common currency discussions have several prerequisites before you can even talk about a common currency framework. The discussion framework in BRICS and the substance of that discussion framework in BRICS have focused principally on trade within national currencies.”
In a similar vein, India’s Minister of External Affairs, S. Jaishankar, also recently emphasized that the notion of a shared currency among BRICS nations is not being deliberated.
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The forthcoming BRICS summit will kickstart today from August 22 to 24 in Johannesburg, hosted by South Africa. Despite expectations that the leaders of BRICS nations would address the possibility of establishing a unified currency, the leading South African diplomat overseeing BRICS relations has clarified that the discussion of a common currency will not be on the summit’s agenda.
BRICS: De-Dollarization Not Our Agenda
There have been strong talks regarding de-dollarization and the BRICS nations actively looking forward to it. Analysts’ opinions have also remained divided over the matter. Certain individuals hold a strong belief that the suggested unified currency for BRICS could surpass the U.S. dollar to become the global dominant currency.
Notable figures, such as Robert Kiyosaki, the author of “Rich Dad Poor Dad,” align with this perspective. Nevertheless, there are those who approach this idea with caution, including British economist Lord Jim O’Neill, who was credited with coining the BRIC acronym. He expressed skepticism, deeming the proposed notion of a common currency as “ridiculous” and “embarrassing.”
South Africa’s BRICS Ambassador, Anil Sooklal, also stated that the economic bloc has no intention of challenging the USD. He clarified that the BRICs will not engage in discussions about efforts to de-dollarize during the upcoming summit in Johannesburg. Sooklal emphasized that the U.S. dollar will maintain its position as the world’s primary reserve currency and will not face any competition from the BRICS nations. The Ambassador emphasized, “The dollar will remain a significant global currency — that’s a reality.”
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