APA-Johannesburg (South Africa) The BRICS group of countries is contemplating creating a new currency that will challenge the US dollar’s dominance as the main medium for international settlements, according to reports monitored here on Friday.
In a move seen as an attempt by the grouping to reduce the exposure by its members to manipulation and other punitive actions by the West, officials from the five member states are reported to be working on the modalities of the proposed currency.
According to the deputy chairman of Russia’s State Duma, Alexander Babakov, the BRICS countries are working on creating a new form of currency and are expected to present ideas on its development at the organisation’s upcoming summit in South Africa in August.
“The transition to settlements in national currencies is the first step. The next step is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future.
“I think that at the BRICS (leaders’ summit) the readiness to realise this project will be announced; such works are underway,” Babakov said on Thursday on the sidelines of the Russian-Indian Strategic Partnership for Development and Growth Business Forum in New Delhi.
He added that the proposed currency could be secured not just by gold, but also by other groups of products or rare earth elements.
He did not rule out the possibility of a single currency emerging in BRICS.
BRICS comprises the world’s largest developing economies – Brazil, Russia, India, China and South Africa – with several other countries having shown interest in joining the economic bloc. These include Argentina, Iran, Indonesia, Turkey, Saudi Arabia and Egypt.
The proposed creation of a new currency comes at a time there is a scramble by Western countries, Russia and China to win over the hearts and minds of African leaders.
The scramble comes in the wake of tensions between the West and Russia over its war in Ukraine and between the United States and China over Taiwan.
JN/APA