The BRICS New Development Bank says that there are no immediate plans to launch its own currency. Moreover, in an interview with Bloomberg, the bank’s Vice President and chief financial officer, Leslie Maasdorp, discussed the alternative currency and where it fits in with the bank’s short- and long-term goals.
“The development of anything alternative is more of a medium- to long-term ambition,” Maasdorp stated. Additionally, the executive stated, “There is no suggestion right now to create a BRICS currency.” Conversely, talk of a BRICS currency has abounded ahead of the cannula summit taking place in August.
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BRICS Has No Immediate Plan for a Currency
With the BRICS Summit in a little over a month, talk of expansion and a BRICS currency has dominated headlines. Moreover, the collective has long spoken of de-dollarization, with the idea of an alternative currency seeking to fast-track those plans. However, it seems as though the development of such a currency is not a direct necessity for the bloc.
Indeed, the BRICS New Development Bank CFO and Vice President say that there are no immediate plans to launch a currency. Moreover, speaking to Bloomberg, it was noted that an alternative currency would not be a short-term aspiration for the bloc. Conversely, it would be more of a long-term goal.
BRICS has undoubtedly sought to increase its relevance in order to better combat Western dominance. Alternatively, the New Development Bank was created as the global South’s answer to institutions like the World Bank and the International Monetary Fund (IMF).
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Subsequently, the bloc has turned to a greater embrace of the national currency, including the Chinese yuan. Moreover, it has increased in use by the bloc’s member states. However, speaking to Bloomberg, Maasdrop said that the renminbi is “a very long way from becoming a reserve currency.”
“The intention has always been to create a global bank anchored in emerging markets,” Maasdorp added. Moreover, the bank could see tremendous growth following the upcoming summit. Specifically, the bloc is set to identify guidelines that could be implemented to support expansion. A plan that has received immense interest from a lot of countries.