BRICS nations are making progress towards the establishment of a single currency, although the process is expected to be challenging and time-consuming, according to Dmitry Birichevsky, the head of the department for economic cooperation at Russia’s Foreign Ministry. The group of emerging economies, which includes Brazil, Russia, India, China, and South Africa, is exploring ways to decrease their dependence on the US dollar and the euro, including alternative payment systems and trade conducted in national currencies.
Birichevsky emphasized that the path to a single currency would be slow and difficult, but expressed confidence that it would eventually be achieved. He argued that diversification is essential in order to break free from reliance on a single currency like the dollar. The economic policies promoted by the US have prompted BRICS countries to explore the creation of their own currencies and pursue alternatives to dollar-based financial institutions. The ongoing process of de-dollarization will contribute to the progress towards a single currency within the BRICS group, according to Birichevsky.
Looking ahead, Birichevsky expressed hope that trade conducted in national currencies would be addressed in the final declaration of the upcoming G20 summit in India. He called for comprehensive discussions on the global monetary and financial system, the role of developing countries, and the issues related to settlements in national currencies.
This push towards the establishment of a single currency within BRICS reflects concerns over the international monetary system, which is currently based on the US dollar. During the recent BRICS summit in Johannesburg, economists, including a former IMF executive, criticized the dollar-dominated system for its dysfunctionality in meeting the needs of developing countries amidst the emergence of a multipolar world.
The pursuit of a single currency within BRICS countries is part of a broader trend towards greater financial independence and autonomy from Western-dominated monetary systems. By reducing their reliance on the dollar and the euro, BRICS nations seek to strengthen their own financial stability and facilitate intra-group trade and economic cooperation.
It is important to note that the establishment of a single currency within BRICS nations will not happen overnight. It requires careful coordination and consensus-building among member countries, as well as addressing the concerns and challenges associated with currency integration. However, the commitment and determination shown by BRICS countries highlight their ambition to reshape the international monetary landscape and foster greater economic cooperation among themselves.
In conclusion, the process of establishing a single currency within the BRICS group is ongoing, although it is expected to be a lengthy and complex endeavor. The exploration of alternative payment systems and trade in national currencies reflects the desire of BRICS nations to reduce their dependence on the US dollar and the euro. This development reflects broader concerns over the international monetary system and the need for greater financial autonomy among emerging economies. While challenges remain, the commitment and discussions within the BRICS group signal their determination to reshape the global monetary and financial system in pursuit of a more multipolar world.