The BRICS alliance is all set to decide on the formation of a new currency in August next month. The currency is touted to dethrone the U.S. dollar by sending it on a path of global decline. BRICS is advancing to eliminate the dollar’s supremacy by making the new currency acceptable to other countries for cross-border transactions. However, Russia’s Central Bank Governor Elvira Nabiullina has given a reality check on the formation of the soon-to-be-released BRICS currency.
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Nabiullina made a huge announcement that undercut Russian President Vladimir Putin’s goals of sidelining the U.S. dollar globally. The Central Bank Governor poured cold water on Russia and China’s quest to capture the international markets even before launching the currency.
Russia’s Central Bank Governor Says BRICS Currency Needs More Work
The Governor of Russia’s Central Bank mentioned that the BRICS currency needs the consent of many stakeholders to move forward. While she said that the currency “deserves attention,” it also “requires the consent of many parties.”
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She added that creating a new currency for global trade “will be quite difficult to implement.” Nabiullina said that creating a new currency for international transactions “is not a simple project at all.”
Not just launching the currency, the basic payment infrastructure to support global transactions is yet to be put into place. Read here to know the progress of the payment infrastructure that the BRICS alliance is working on.
Her comments come on the heels of Russia and China convincing other countries to ditch the U.S. dollar even before the formation of the BRICS currency. Russia and China are on a power prowl for global dominance and are desperate in their attempts to dethrone the U.S. dollar.
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BRICS is an acronym for Brazil, Russia, India, China, and South Africa. The bloc of five nations is looking at expansion and could become BRICS+ after the summit in August.