- The bloc of nations confirmed by Brazil, Russia, India, China and South Africa, BRICS are working to develop a new form of currency, and they plan to present at the BRICS leaders’ summit next August,
- The deputy chairman of the State Duma raised the possibility of a single currency backed by gold and other commodities.
“Unity is strength” is a phrase used by Bulgaria and Haiti on their national coat of arms, as well as being the national motto of Malaysia, Belgium, Bolivia and Bulgaria.
Likewise, it is a phrase that has a lot of meaning, since it refers to the fact that, if you work as a team towards a common goal, you can achieve things that you could not otherwise do alone.
In economics, a good example of this type of union is the euro, the official currency of the European Union used by 19 of the 27 countries that make it up. Its main objective is to facilitate trade and economic exchanges between EU countries, removing barriers and costs associated with currency exchange.
Thanks to its efficiency, the euro has possibly been the model to follow for countries BRICS (the bloc of nations confirmed by Brazil, Russia, India, China and South Africa). According to a statement made byrAlexander Babakov, Vice Chairman of the State Duma, at the India-Russia Business Forum in New Delhithese countries are working to develop a new form of currency, and they plan to present at the BRICS leaders summit next Augustwhich will take place in South Africa.
“The transition to settlement in national currencies is the first step. The next is to provide the circulation of digital currency or any other form of a fundamentally new currency in the nearest future. I think that in the BRICS [cumbre de líderes] readiness to carry out this project will be announced, such work is underway”, stated Babakov in this regard.
The deputy chairman of the State Duma raised the possibility of a single currency backed by gold and other commodities.s, such as rare-earth or land, within the BRICS group.
A unified currency
During the India-Russia Business Forum, Babakov stressed the importance of India and Russia establishing a new economic partnership through the creation of a shared currency. However, he also mentioned that the participation of China would be fundamental in the process development of a common currency for the three nations.
India TV quoted him as saying:
“New Delhi, Beijing and Moscow are the nations now instituting a multipolar world backed by the majority of governments. Its composition must be based on inducing new monetary ties established in a strategy that does not defend the US dollar or the euro, but instead forms a new currency capable of benefiting our common objectives.” .
This idea could be closer to being carried out thanks to a series of bilateral agreements that the government of China It has signed with nations such as Russia and Brazil, in which an agreement has been reached to adopt the Chinese yuan as a settlement currency with emerging economies and to facilitate trade through the use of their respective national currencies.
According to some sources, Russia may be behind the development of this new currency, especially due to its clashes with the West in the last year and its consequent economic sanctions, due to the invasion of Ukraine.
Countries interested in joining BRICS
It is important to mention that various countries, such as Saudi Arabia, Argentina, Egypt, Indonesia, Iran and Turkey, have expressed their interest in joining the BRICS economic bloc.
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