The BRICS nations are reportedly working on developing a new form of currency, which is expected to be discussed at the upcoming BRICS leaders’ summit, according to a senior Russian official. “The transition to settlement in national currencies is the first step. The next one is to provide the circulation of digital currency or any other form of a fundamentally new currency in the nearest future,” said the deputy chairman of the Russian State Duma.
New currency for BRICS countries
The BRICS countries are reportedly working on creating a new form of currency with a plan to present its development at the BRICS leaders’ summit in August, State Duma Vice Chairman Alexander Babakov said on the sidelines of the India-Russia Business Forum in New Delhi on Thursday. . This forum marks the beginning of international events at the 2023 St. Petersburg International Economic Forum. He senior Russian official was quoted as saying:
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 believe that the willingness to carry out this project will be announced at the BRICS (leaders’ summit), such works are underway.
The BRICS nations are Brazil, Russia, India, China, and South Africa. Several other countries have expressed interest in joining the economic bloc, including Argentina, Iran, Indonesia, Turkey, Saudi Arabia and Egypt. South Africa will host the next BRICS summit in August.
Settlements in national currencies have begun among the BRICS nations. Recently, Russian President Vladimir Putin and Chinese President Xi Jinping agreed to adopt the Chinese yuan as a settlement currency with emerging economies. The Chinese government also signed a bilateral agreement with Brazil to facilitate trade using their national currencies.
Babakov left open the possibility of a unified currency emerging within the BRICS, potentially backed by gold and other commodities such as rare earth elements or earths.
At the India-Russia Business Forum on Thursday, Babakov stressed that India and Russia “should institute a new economic partnership with a new shared currency,” but noted that China could play a crucial role in developing a common currency for the three nations. . He was quoted by India TV 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.
The Russian official also expressed his satisfaction with the economic situation in his country while criticizing US President Joe Biden and the European Union. He argued that the dollar and euro serve the interests of Washington and London rather than the world community at large, stressing that they do not recognize Russia, India and China as equal counterparts.
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