BRICS experts are concentrating on expanding the use of member states’ currencies while deepening economic and financial market ties, according to South Africa’s ambassador to the organization, Anil Sooklal.
During an interview with Russian media, he mentioned that creating a common currency is a medium to a long-term goal and not an immediate task.
National currencies crucial for trade and Investment
Sooklal emphasized the importance of increasing the use of national currencies in mutual trade, investments, and other transactions among BRICS countries. He explained that the group has an agreement in place, which is currently being implemented in practice.
The ambassador added that the foundation for a single BRICS currency could be created only by expanding the use of national currencies.
BRICS expansion and common currency discussions
Officials from the BRICS group, including Brazil, Russia, India, China, and South Africa, are expected to meet in Cape Town in early June. Sooklal also said that the talks would focus on enlargement, with 19 other countries expressing interest in joining the organization. The potential issuance of a common BRICS currency will be discussed at the BRICS leaders’ summit in August.
This idea has raised concerns about possibly undermining the U.S. dollar’s dominant global role in the United States, as current BRICS members support the common currency to increase their influence and circumvent Western sanctions.