The deputy chairman of the State Duma, Alexander Babakov, recently revealed that the BRICS countries are working on developing a new currency. The countries involved can pitch ideas related to the goal at the upcoming summit in South Africa.
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There is a good chance that a single BRICS currency will emerge
Speaking on the sidelines of the Russian-Indian Strategic Partnership for Development and Growth Business Forum, Babakov said:
“I think with the BRICS [leaders’ summit]readiness to realize this project will be announced, such works are ongoing.”
That said, the doors are currently open for the emergence of a single BRICS currency. In addition to gold, this currency can also be backed by other commodities, such as rare earths or soil, says Babakov. Reportedly added. According to the chairman
“The transition to settlements in national currencies is the first step. Next is to provide the circulation of digital or any other form of a fundamentally new currency in the near future.
The next BRICS summit will take place in August this year. Jim O’Neill recently indicated that a group of countries must expand and work to counter dollar dominance. Notably, O’Neill has served as a former chief economist at Goldman Sachs and coined the acronym BRIC. Currently, Brazil, Russia, India, China and South Africa are part of BRICS, but many other countries are planning to join.
In fact, even O’Neill has urged the bloc to expand. However, he believed they should have strict criteria to ensure that the addition of new members continues to strengthen their collective goals. If the bloc expands to include other “emerging countries with continued surpluses,” a more equitable, multi-currency global system could emerge, O’Neill said. He further urged the BRICS countries to focus on climate finance, improving health care and boosting trade.
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