BRICS to Foster Trade and Economic Cooperation in National Currencies

BRICS to Foster Trade and Economic Cooperation in National Currencies

South Africa’s BRICS Sherpa has called for "strengthening economic cooperation" between the member nations as one of the priorities at the upcoming BRICS summit slated for August. He announced, "We need a stable global financial architecture, a global financial arena. That is why we need to trade in our currencies." He also believes that the recession forecasts by the International Monetary Fund (IMF) and the World Bank will not impact the BRICS nations.

BRICS Sherpa Outlines August Summit Priorities

Anil Sooklal, South Africa’s BRICS Sherpa, discussed the agenda and priorities of the upcoming BRICS summit under South Africa’s presidency in an interview with BRICS TV on Wednesday. Sooklal worked as a member of the teaching faculty at the University of KwaZulu-Natal and the University of South Africa. He has served as the Deputy Director General of the Asia and Middle East Department of International Relations and Cooperation until January 2022. He was appointed as South Africa’s Ambassador to the European Union, Belgium, and Luxembourg from 2006 to 2012.

The BRICS summit is scheduled to be held in Johannesburg from August 22 to 24. All five leaders of the five-member nations (Brazil, Russia, India, China, and South Africa) have been invited to the summit. Sooklal declared, "This will be the first face-to-face summit in four years.

"BRICS as a global association is based on three pillars: political security, economic and financial development, and social interaction among the member countries. All three pillars are critically important for the creation of a global political architecture that is equitable and just, which is a stable, safe environment for all," the South African Sherpa explained.

"We need a stable global financial architecture, a global financial arena. That is why we need to trade in our currencies," he said.

BRICS to Explore the Launch of a Common Currency

The BRICS economic bloc will explore the launch of a common currency, which is likely to be discussed at the August summit by the BRICS leaders. As the trend to de-dollarize expands worldwide, many countries are looking forward to a BRICS currency that can end the US dollar’s dominance.

Sooklal outlined the goals of the upcoming BRICS summit. "One of the priorities is to strengthen economic cooperation." He added that the group has adopted the second version of the BRICS Economic Partnership Strategy. "The document sets out the main areas for BRICS cooperation until 2025 in the areas of trade, investment, finance, the digital economy, and sustainable development," he stated.

The World Bank and the International Monetary Fund (IMF) "have agreed that about a third of the world economy will be in recession this year," but he opined:

"I do not think this forecast will impact the BRICS countries. We are going to see positive dynamics. Some of the fastest-growing economies are India and China. They are helping to stimulate the BRICS economies and the global economy as a whole."

Discussing the growing interest in joining the BRICS group, Sooklal disclosed that during the Beijing summit last year, "the BRICS leaders asked us to consider the expansion of the association and to develop the guidelines for the admission of new members." He recently revealed that 19 countries have either applied to join or expressed interest in joining the BRICS. "This is positive news for the bloc, as it demonstrates the confidence of the Global South in the leadership of our association," he said.

What is your take on the BRICS common currency and the expansion plan? Please post your comments.