BRICS Currency Discussions Will Not be Part of August Summit

Joshua Ramos
Source: Reuters

South Africa’s BRICS Ambassador, Anil Sooklal, has stated that BRICS currency discussions will not be a part of the August summit. Specifically, Sooklal said “There’s never been talk of a BRICS currency, it’s not on the agenda,” according to Reuters.

The development of an alternative BRICS Currency has long been rumored. Moreover, many had expected that the upcoming summit would be the setting for that development to be set in stone. Yet, South Africa has seemingly reiterated that those discussions have not yet taken place.

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BRICS Currency Not Included in Upcoming Summit?

The year of growth continues for the BRICS economic alliance, as its impending annual summit is set to be vital. With expansion efforts taking center stage, the bloc is set to establish itself as a haven for the global south. Yet, one aspect of the gathering that many had expected may not come to fruition.

Indeed, South Africa has confirmed that BRICS Currency discussions will not be part of the upcoming summit. Moreover, the country has reiterated its emphasis on the national and local currency use of its member states. Sooklala remarked, “What we have said and we continue to depend on is trading in local currencies and settlement in local currencies.”

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Also Read: South Africa Signals that BRICS Expansion May Not Happen in August

The idea of a common BRICS currency has been shared by several heads of state, including Brazil’s Luiz Inacia Lula Da Silva. Moreover, Russia has seemingly confirmed the development of a gold-backed trade currency. leading many to suspect that the project would come to fruition at the upcoming summit.

Yet, South Africa’s stance seems to reaffirm that there may be a disconnect regarding this specific project. Additionally, the idea of an alternative currency for the bloc has remained a potential ally in its de-dollarization efforts. How the story continues to unfold will be interesting. However, it seems as though the bloc remains unified by the idea.