AmericasFinanceGlobalInFocusSouth East Asia

BRICS Countries To Discuss The Issue of Reserve Currency

In an effort to reduce reliance on the dollar and euro, BRICS is set to build a joint financial infrastructure that will enable a reserve currency to be created.

Sharing is caring!

The BRICS countries are working on establishing a new reserve currency to better serve their economic interests, Ambassador at Large of Russia’s Foreign Ministry Pavel Knyazev said.

It will be based on a basket of the currencies of the five-nation bloc, RT reported.

“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 said during a discussion about expanding BRICS and the Shanghai Cooperation Organization.

According to the diplomat, member states are “actively studying mechanisms” to exchange financial information to develop a reliable alternative for international payments.

In an effort to reduce reliance on the dollar and euro, BRICS is set to build a joint financial infrastructure that will enable a reserve currency to be created.

The group, which comprises Brazil, Russia India, China, and South Africa, has been boosting economic ties, with trade turnover steadily growing despite restrictions brought on by the pandemic and conflict in Ukraine, RT reported.

BRICS had previously said it was working on establishing a joint payment network to cut reliance on the Western financial system. The member countries have also been increasing the use of local currencies in mutual trade.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: