Two BRICS countries are closely working towards launching a common currency and sideline the US dollar for trade and transactions. Both the countries are sanctioned and re-sanctioned by the White House this year and their economy is reeling under pressure. Therefore, the duo are finding alternative solutions to keep their respective economy afloat and not go bust as sanctions hit.
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BRICS: Russia & Iran Working Towards Launching a Currency to Sideline US Dollar
Kazem Jalali, Iran’s Ambassador confirmed that the Islamic Republic is working closely with its BRICS counterpart Russia to create a new currency to end US dollar dependency. Jalali revealed that the creation of a new currency can uplift Russia and Iran’s economy avoiding reliance on the West.
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“The creation of a new single currency within the framework of the (BRICS) association is what Russia and Iran are working on,” to bypass the US dollar, the diplomat stated. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
A source close to the development said that the US imposing restrictions led to the idea of creating a new currency. The use of local currencies is now becoming a top priority among BRICS members as the US dollar is weaponized. However, Jalali did not provide more details about the formation of the new currency. The currency formation remains unsubstantiated as Jalali failed to support his claims with evidence.
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The Ambassador failed to reveal the progress of the new currency and whether it has started or remains under work. The timeframe and the work behind the formation remains a mystery with little to no details being put up. It is not known if BRICS member Russia and Iran are keeping details under wraps or whether the currency plans are nothing but hearsay.