The BRICS bloc, which consists of Brazil, Russia, India, China, and South Africa, is now focusing on expanding the use of the national currencies of its member states. The objective is to deepen economic and financial ties between the countries, with the eventual aim of creating a common currency. However, according to South Africa's ambassador to the organization, Anil Sooklal, the establishment of a single currency is not an immediate priority.
In an interview with the Tass news agency, Sooklal emphasized the importance of first increasing the use of national currencies in trade and investment, to create a foundation for a single currency. He stated that the BRICS countries are implementing an agreement to use their national currencies in mutual trade. Different scenarios related to trade and currencies are being considered, and officials from the group of emerging economies are expected to meet in Cape Town in early June to discuss enlargement.
The idea of a common BRICS currency has caused concerns in the United States, as it could potentially undermine the dominant role of the US dollar on the world stage. However, the current focus is on expanding the use of national currencies, with the establishment of a single currency being a medium-term and longer-term goal. The matter is set to be discussed at the next BRICS leaders' summit in August.
As the BRICS economies continue to grow, deepening economic and financial ties between the member states could bring significant benefits. Expanding the use of national currencies in trade and investment is a crucial step towards the creation of a common currency and could help to reduce reliance on the US dollar in global transactions.
