Russian Official Says BRICS Currency Could Be Discussed at Upcoming Summit

Russia’s deputy prime minister has stated that the topic of a common BRICS currency may still be on the table at the economic bloc’s upcoming leaders’ summit. A total of 69 leaders, including all African heads of state, have already been invited to the August summit where de-dollarization will be among the key topics discussed.

Russian Official on BRICS Currency

Russian Deputy Prime Minister Alexei Overchuk stated in an interview with Russian news outlet Tass on the sidelines of the second Russia-Africa summit this week that the issue of creating a basket of BRICS currencies may be raised at the economic bloc’s upcoming summit that will take place from Aug. 22-24. The BRICS nations comprise Brazil, Russia, India, China, and South Africa.

The Russian official was quoted as saying:

The BRICS leaders will hold a meeting soon where they may touch upon the settlement system issue. Perhaps, the idea of creating a basket of currencies based on a certain payment unit will also be discussed.

“Perhaps the leaders will decide to task the relevant expert bodies with looking into the matter,” Overchuk added, emphasizing: “Clearly, it’s a very difficult issue.”

While the Russian deputy prime minister believes that the topic of a common BRICS currency could be discussed at the summit, South Africa’s diplomat in charge of BRICS relations, Anil Sooklal, has stated: “There’s never been talk of a BRICS currency, it’s not on the agenda.” South Africa is hosting the BRICS summit this year, and Sooklal is in charge of planning the agenda for the summit.

Moreover, Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, also known as the BRICS Bank, recently clarified that the economic bloc has no immediate plan to launch a currency to compete with the U.S. dollar. Noting the distinction between de-dollarization efforts and the creation of a common BRICS currency, he stressed: “The development of anything alternative is indeed a medium to long-term ambition.” Both Maasdorp and Sooklal have stressed that the BRICS bloc is focusing on de-dollarization and encouraging the use of national currencies for trade settlements.

Furthermore, rumors abound that the BRICS group might unveil a gold-backed currency during the summit. Many people believe that a unified BRICS currency could erode the U.S. dollar’s status as the world’s dominant currency. Nevertheless, obstacles lie ahead. Russia’s central bank governor, for instance, has cautioned that a BRICS currency will require the consent of numerous parties, and she foresees potential challenges in its implementation.

The BRICS has drawn interest from over 40 countries seeking to join the group. According to Sooklal, 22 nations have already formally applied. Moreover, the diplomat has revealed that South Africa has invited 69 leaders to the summit, including all of the African heads of state and the leaders of major Global South bodies. However, he affirmed that no Western countries have been invited.

Do you think the subject of a common BRICS currency will be discussed at the economic bloc’s upcoming summit? Let us know in the comments section below.

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