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The BRICS countries are exploring establishing a new reserve currency to better serve their economic interests, according to senior Russian diplomat and BRICS points person Pavel Knyazev. It will be based on a basket of the currencies of the five-nation bloc, ET has learnt.
“The possibility and prospects of setting up a common single currency based on a basket of currencies of the BRICS countries is being discussed,” Knyazev, Russian Sou Sherpa on BRICS said during a discussion at Valdai Club in Moscow last week. Valdai is closely associated with President Vladimir Putin.
During the 14th BRICS Summit in June, Russian President Vladimir Putin announced that Brazil, Russia, India, China, and South Africa plan to issue a “new global reserve currency.” “We are ready to openly work with all fair partners,” he had then stated.
According to Knyazev member states are “actively studying mechanisms” to exchange financial information to develop a reliable alternative for international payments.
BRICS plans to build a joint financial infrastructure that will enable a reserve currency to be created to reduce relianceon the dollar and euro, according to persons familiar with the development. BRICS has been boosting intra BRICS economic ties, with trade turnover steadily growing despite restrictions brought on by the pandemic and the conflict in Ukraine.
