BRICS Are Developing a New Currency: State Duma Deputy Chair

Lavina Daryanani
Source: The Embassy Of The Republic Of South Africa

The State Duma’s Deputy Chairman, Alexander Babakov recently revealed that the BRICS countries are working on the development of a new form of currency. The nations involved may pitch ideas related to the objective during its upcoming summit in South Africa.

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There are odds of a single BRICS currency emerging

Talking on the sidelines of the Russian-Indian Strategic Partnership for Development and Growth Business Forum, Babakov said,

“I think that at the BRICS [leaders’ summit], the readiness to realize this project will be announced, such works are underway.”

That being said, the doors are currently open for a single BRICS currency to emerge. Alongside gold, this currency might also be backed by other commodities like rare-earth elements or soil, Babakov reportedly added. According to the Chairman,

“The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future.”

BRICS’ next summit is set to take place in August this year. Jim O’Neill recently indicated that a group of countries should expand and work to counter the dollar’s dominance. Notably, O’Neill has served as the former Chief Economist at Goldman Sachs and coined the acronym BRIC. Currently, Brazil, Russia, India, China, and South Africa are a part of BRICS, but a host of other nations intend to join it.

In fact, even O’Neill has urged the bloc to expand. However, he opined that they should apply strict criteria to ensure the addition of new members continues to strengthen their collective goals. If the bloc expands to include other “emerging nations with persistent surpluses,” a globally fairer, multi-currency global system could emerge, O’Neill said. Furthermore, he urged the BRICS to focus on climate finance, improving healthcare, and boosting trade.

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