Amidst discussion regarding an alternative trade currency, Russia has discussed the ongoing BRICS currency challenges. Specifically, the Governor of Russia’s Central Bank told reporters that the proposed currency “deserves attention” while stating it “will be quite difficult to implement.”
The idea of an alternative currency has long been held by the economic alliance. Moreover, it has been a key aspect of its ongoing de-dollarization efforts over the last several months. Indeed, it is likely to be a key part of the upcoming 2023 summit, which will take place in August.
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Russia Central Bank Talks BRICS Currency Challenges
Over the course of the year, the rising power of the BRICS bloc has been an undeniable story. Moreover, the economic alliance has seemingly given a voice to the global south in its pursuit of a multipolar world. Part of that pursuit is a de-dollarization plan that would greatly benefit from an alternative currency. An idea that has been prominent among the bloc’s members.
Yet, with the annual summit fast approaching, Russia has discussed the BRICS currency challenges that the alliance could be facing. Specifically, Elvira Nabiullina, the governor of the country’s Central Bank, has noted just what would be required for its integration.
Firstly, Nabiullina stated that the idea of an alternative currency certainly “deserves attention.” However, she also states that it undeniably “will be quite difficult to implement,” in the following remarks. “Like any idea of a supranational currency, it requires the consent of many parties. This is not a simple project at all,” she added.
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“Therefore, we are still working and concentrating our efforts on the development of bilateral settlements using the national currency,” she stated. “The developer of the infrastructure that connects our payment systems—what businesses need today,” remains a constant focus.
Still, the idea of a BRICS currency seems to remain a matter of when and not if. In recent statements, the BRICS New Development Bank assured that a currency remains a long-term goal. However, Russian news outlets have assured that the bloc is creating a gold-backed trade currency. Ultimately, the upcoming 2023 summit in Johannesburg should present informed discussions on the bloc’s trajectory in this aspect.