- The BRICS nations are reportedly planning a new currency to reduce dependence on the US dollar.
- South African Ambassador to China, Siyabonga Cyprian Cwele, announced that BRICS members will meet to discuss the specifics.
- The move comes amid a period of expansion for BRICS, which recently added Saudi Arabia, Iran, Ethiopia, Egypt, and the United Arab Emirates.
BRICS nations are reportedly planning a new digital currency to reduce dependence on the US dollar, marking a significant shift in global economic dynamics.
BRICS Nations Plan New Currency
The BRICS nations, comprising Brazil, Russia, India, China, and South Africa, are reportedly working on a new currency to reduce their dependence on the US dollar. According to South African Ambassador to China, Siyabonga Cyprian Cwele, members will convene this month to discuss the specifics.
A Digital Currency to Facilitate Global Trade
The agenda includes a debate on whether a digital currency would effectively facilitate global trade and settlement while reducing the risk of sanctions. Cwele stressed the importance of supporting the use of local currencies with open financial data sharing, while exploring digital currencies as ways to reduce risks such as sanctions by relying solely on a singular currency.
Expansion of BRICS
BRICS has been expanding, with the recent addition of Saudi Arabia, Iran, Ethiopia, Egypt, and the United Arab Emirates. Cwele revealed that more than 20 additional countries have now expressed an interest in joining. The leaders are working to create new guidelines for adding additional countries that are non-discriminatory and address issues beyond economics.
Conclusion
The move by BRICS nations to create a new digital currency signifies a significant shift in global economic dynamics. It remains to be seen how this development will impact the dominance of the US dollar in global trade and settlements. The expansion of BRICS and the interest of other nations to join indicates the growing influence of these economically-aligned nations.
