Saturday, September 30, 2023

Alexei Overchuk, Russia’s Deputy Prime Minister, has indicated that the forthcoming leaders’ summit of the BRICS economic bloc may explore the idea of a unified BRICS currency. The summit, slated for August, has already sent out invites to 69 leaders, including all African heads of state. Among the central themes of the gathering will be the de-dollarization initiative.

During an interview on the sidelines of the second Russia-Africa summit, Overchuk hinted to the Russian news agency Tass that the creation of a BRICS currency pool might feature in the discussions of the summit scheduled for August 22-24. The BRICS members include Brazil, Russia, India, China, and South Africa.

He was cited as saying:

The upcoming BRICS leaders’ meeting might bring up the matter of a settlement system. The prospect of forming a currency pool based on a particular payment unit could also be part of the conversation.

Overchuk further added, “It might be possible that the leaders will entrust the appropriate specialist bodies to examine the issue,” stressing the complexity of the topic.

While the Russian Deputy Prime Minister thinks the concept of a joint BRICS currency might surface at the summit, Anil Sooklal, South Africa’s diplomat managing BRICS relations, claims otherwise: “A BRICS currency has never been a topic of conversation, it’s not on the agenda.” Sooklal is the orchestrator of this year’s BRICS summit, hosted by South Africa.

Additionally, Leslie Maasdorp, the New Development Bank’s Vice President and CFO, commonly known as the BRICS Bank, clarified that the bloc has no immediate plans to introduce a currency that would rival the U.S. dollar. He highlighted the difference between de-dollarization strategies and the establishment of a common BRICS currency, emphasizing: “Constructing any alternative is indeed a medium to long-term aspiration.” Both Maasdorp and Sooklal underscored that the BRICS group is prioritizing de-dollarization and promoting the use of individual currencies for trade settlements.

Rumors also suggest that the BRICS coalition might announce a gold-backed currency at the summit. Many believe that a unified BRICS currency could threaten the U.S. dollar’s global dominance. However, challenges remain. For instance, Russia’s central bank governor has warned that the approval of various parties would be needed for a BRICS currency, and she anticipates potential difficulties in its execution.

The BRICS group has attracted over 40 countries seeking membership. Sooklal confirmed that 22 nations have already officially applied. Additionally, the diplomat mentioned that South Africa has extended invitations to 69 leaders for the summit, inclusive of all African heads of state and leaders of major Global South organizations. However, he clarified that no Western countries have been invited.

Do you believe that the BRICS summit will discuss the potential of a common currency? Share your thoughts in the comments section below.

Frequently Asked Questions (FAQs) about BRICS currency

What is the BRICS economic bloc?

The BRICS economic bloc comprises five major emerging economies: Brazil, Russia, India, China, and South Africa. These nations collaborate on financial and geopolitical matters.

Will the BRICS leaders’ summit discuss a common currency?

There is a possibility that the topic of a common BRICS currency will be discussed at the upcoming summit. Russian Deputy Prime Minister Alexei Overchuk hinted at the potential for exploring the creation of a currency pool based on a specific payment unit.

What other key topics will be discussed at the summit?

Among the central themes at the summit, de-dollarization efforts will be a significant focus. The leaders will deliberate on strategies to reduce dependency on the U.S. dollar in international trade settlements.

Is there a plan to launch a BRICS currency to compete with the U.S. dollar?

No, the BRICS bloc currently has no immediate plan to introduce a currency that would rival the U.S. dollar. According to Leslie Maasdorp, Vice President of the New Development Bank, any such move is considered a medium to long-term ambition.

What are the challenges in implementing a common BRICS currency?

The approval of numerous parties would be required for a unified BRICS currency. The governor of Russia’s central bank has cautioned that potential challenges lie ahead in its implementation.

Will the BRICS summit unveil a gold-backed currency?

There are rumors suggesting the possibility of a gold-backed currency being unveiled during the summit. However, no official confirmation has been made.

How many countries are seeking to join the BRICS group?

Over 40 countries have expressed interest in joining the BRICS group. According to Anil Sooklal, the diplomat managing BRICS relations for South Africa, 22 nations have already formally applied.

Who has been invited to the summit?

South Africa has extended invitations to 69 leaders for the summit, including all African heads of state and leaders of major Global South organizations. However, no Western countries have been invited.

More about BRICS currency

  • “Russia’s Deputy Prime Minister Alexei Overchuk hints at the possibility of BRICS common currency at upcoming summit” (Source: Tass)
  • “Details about the second Russia-Africa summit” (Source: Tass)
  • “Anil Sooklal, South Africa’s diplomat on BRICS relations, denies talks of a BRICS currency” (Source: Bloomberg)
  • “Leslie Maasdorp clarifies BRICS’ medium to long-term ambition for an alternative currency” (Source: Bloomberg)
  • “Rumors about a gold-backed currency to be unveiled at the BRICS summit” (Source: MarketWatch)
  • “Challenges in implementing a BRICS currency” (Source: Reuters)
  • “Interest from over 40 countries to join BRICS group” (Source: Business Standard)
  • “South Africa invites 69 leaders to the BRICS summit, excludes Western countries” (Source: Al Jazeera)


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