The President of Brazil, Luiz Inácio Lula da Silva, recently stated that he believes that Brazil, Russia, India, China, and South Africa, the BRICS nations should establish a common currency to compete globally. This currency would be independent of the US dollar, as reported by Nikkei. President Lula expressed his hope for the creation of a unified currency among BRICS countries to strengthen economic ties with China at a press conference following his attendance at the G7 meeting in Hiroshima. The goals of the G7 nations are focused on “de-risking” while still collaborating with China.
Previously, President Lula spoke in support of a BRICS currency about a month ago. He questioned the notion that the US dollar became the dominant trade currency following the end of the gold standard. The BRICS bank could have its own currency to facilitate trade relations between Brazil and China, as well as other BRICS member nations.
Strong opinions regarding a potential universal currency vary among BRICS leaders depending on the country. A prominent Russian lawmaker recently suggested that BRICS is already developing an alternative currency to circumvent the US dollar. However, South African Foreign Minister Naledi Pandor believes that the creation of a global BRICS currency necessitates thorough and careful discussion before its launch.
President Lula’s proposal for a common currency within BRICS signals a desire for increased economic independence and a reduced reliance on the US dollar. The establishment of their currency presents complexities and opportunities for the BRICS nations that remain to be seen as ongoing discussions and debates on the issue continue.
Compiled by Coinbold
