The BRICS alliance is not working towards the formation of a unified international currency, confirms Russian spokesman Dmitry Peskov. He issued a clarification amid the ongoing raging debate about the future of the US dollar when a new currency is launched. Peskov called the formation of an alternative currency a “misconception” during an international political forum held in Moscow last week.
However, he added that BRICS is only focusing on using local currencies for trade as an alternative payment system to the US dollar. He stressed that America’s imposition of sanctions has increased the usage of local currencies for trade and transactions. The spokesperson revealed that BRICS members are actively discussing expanding payments in local currencies. This allows them to push their national currencies to actively compete with other currencies in the forex markets.
His statement comes at a time when international discussions are being held over the prospects of a BRICS currency. Several commentators have also called the tender a dominant force that can truly challenge the US dollar. The idea has also faced criticism from US President Donald Trump, who previously warned BRICS members of such a move. The warnings include extended tariffs and reduced business deals over the course of a long period.
BRICS Currency Might Not Be Discussed at the 18th Summit in India
Peskov’s comments also come on the heels of the next BRICS summit, which is scheduled to take place in September in India. While commentators were confident about a discussion of a BRICS currency, Peskov’s statements have poured cold water on the dialogue. Most likely, member nations will discuss ways to extend local currency payments at the 18th BRICS summit in New Delhi. Moreover, Russia and China are moving beyond the US dollar for payments, by putting the ruble and yuan ahead for settlements.
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