BRICS Summit in South Africa to Focus on Local Currency Trading, Common Currency Not on Agenda
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A BRICS currency will not be on the agenda of the upcoming BRICS summit in South Africa next month, according to Anil Sooklal, South Africa’s Ambassador at Large: Asia and BRICS. While some leaders within the bloc had previously touted the idea of a common currency to challenge the dominance of the U.S. dollar in global finance, it appears that the focus will be on trading and settling in local currencies instead.
The BRICS countries (Brazil, Russia, India, China, and South Africa) have been seeking alternatives to the dollar, especially amid Russia’s sanctions-imposed exile following its invasion of Ukraine. However, the idea of a common currency would require significant financial and macroeconomic convergence, which currently seems unlikely. Instead, the emphasis remains on strengthening local currency trading within the bloc.
