BRICS Considers Alternative to Dollar: Common Unit of Account Discussed
The BRICS alliance is shaking things up in the financial world with talks of introducing a new game-changer, an alternative to the US dollar. Russia's Finance Minister, Anton Siluanov, spilled the beans, revealing that the members are seriously considering launching a shared unit of account. This special currency could be used to measure the value of commodities, offering a new perspective on the way things are valued. Unlike the euro, though, it wouldn't be a one-size-fits-all currency.
BRICS Nations Deliberate Unified Settlement System and Currency Shift
During a discussion with the Chinese state-run CGTN TV channel at the BRICS summit, Minister Siluanov revealed more details. The BRICS bloc (Brazil, Russia, India, China, and South Africa) is discussing the possibility of an alternative to the US dollar.
Leaders of the BRICS bloc are meeting in Johannesburg from August 22-24, with Russian President Vladimir Putin joining on virtual mode via video link, to discuss the future of the bloc. The prospect of issuing a single currency for the bloc, which unites leading emerging economies, is one of the primary topics on the summit's agenda.
Minister Siluanov indicated that they are currently focused on the development of trading in their national currencies. He mentioned, "We see the potential to discuss the creation of unified settlement systems.” He further explained:
"This can be a unit of account for the BRICS member countries. Not a single currency like in the EU but an alternative to the dollar, in which the cost of commodity deliveries can be denoted as well as benchmarks for some goods so as not to depend on the single currency or an issuing center that issues banknotes in a no-one-knows-how manner."
BRICS Currency Concept Gains Traction
The BRICS bloc has been in some deep discussions lately for a single currency, a move that the Tass news agency has once reported, citing the South African Ministry of International Relations. However, there is no decision on the raging issue. The official stated that while the notion of a BRICS currency is gaining traction, it's more of a concept on the table.
The BRICS foreign ministers meeting in Cape Town in early June announced plans for promoting local currencies in global trade. In April, Anil Sooklal, South Africa's BRICS ambassador, highlighted the significance of a common currency, while putting in the effort to spread the use of national currencies.
Do you think that BRICS will eventually issue a single currency? Please share your thoughts and opinions in the comments section below.
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