By Enyichukwu Enemanna
There are indications that member countries of the BRICS bloc are planning to hold talks on rolling out a common currency that will challenge the dominance of dollar in the global market.
The summit to be hosted by South Africa will hold on Aug. 22 in Johannesburg.
The BRICS nations comprise Brazil, Russia, India, China, and South Africa
South African Minister of International Relations and Cooperation, Naledi Pandor, in an interview with Bloomberg said she does not like “preempting BRICS leaders’ discussions,” but it will form part of the discourse.
“It’s a matter we must discuss and discuss properly.
“I don’t think we should always assume the idea will work because economics is very difficult and you have to have regard to all countries, especially in a situation of low growth when you are emerging from crises,” she continued.
The bloc has been ramping up their de-dollarization efforts, and a common BRICS currency is expected to help member countries shift away from the reliance on the United States dollar.
A Russian official recently said he expects an agreement on a BRICS currency this year.
At the moment, Nineteen countries have either applied to join the BRICS economic bloc or have expressed interest in joining, including Saudi Arabia and Iran.
There are expectations for a common BRICS currency to erode the U.S. dollar’s dominance.
A former White House economist said if the BRICS nations used only their common currency for international trade, “they would remove an impediment that now thwarts their efforts to escape dollar hegemony.”
However, some believe that a BRICS currency poses little to no threat the to USD.
