Establishing a BRICS common currency is an ambitious long-term task, according to Redge Nkosi, executive director and head of research at South African company Firstsource Money. However, he believes that launching a joint payment system for intra-member trade could easily be achieved in the near term. Nkosi pointed out that Russia, China, and India have already developed their own payment systems, and there is also a payment system in Latin America.
Nkosi emphasized the importance of detaching bilateral trade from Western currencies in order to strengthen intra-member cooperation. He suggested that the fundamental challenge facing BRICS is the reliance on foreign currencies for international trade. In his view, BRICS should begin to unwind this challenge by establishing a BRICS payment system that can unite all member countries. Nkosi believes that this goal is achievable and would contribute to the independence of BRICS countries from the dominant influence of the US and the Western sphere.
To overcome this challenge, Nkosi proposed that BRICS members should focus on bilateral trade and financing, including multilateral financing within the group. He argued that trading with countries like Russia or China should not be constrained by the use of a third currency. Nkosi stressed the importance of de-dollarizing and assuming their own independence from the global economy constructed from the US or Western sphere. He suggested that the West is worried about losing its grip on many countries, including those in BRICS.
When asked about the key sectors that BRICS should prioritize within the group, Nkosi mentioned energy and telecommunications. He also highlighted the importance of infrastructure, such as transport and logistics, which would facilitate the movement of people, capital, and goods among member countries.
In conclusion, Nkosi believes that while establishing a BRICS common currency is a long-term goal, launching a joint payment system for intra-member trade is more feasible in the near term. Detaching bilateral trade from Western currencies and establishing a BRICS payment system would strengthen intra-member cooperation and contribute to the independence of BRICS countries from the influence of the US and the Western sphere. Prioritizing sectors such as energy, telecommunications, and infrastructure would further enhance cooperation and facilitate the movement of resources within the group. BRICS countries have the opportunity to strengthen their ties and create a more self-reliant economic network.