BRICS don't need a common currency?

07.07.2023 The new development bank created by the BRICS (the bloc includes Brazil, Russia, India, China and South Africa) has no short-term plans to create a common currency. This was announced in an interview with Bloomberg by Leslie Maasdorp, vice president and Chief Financial Officer of the bank. According to him, the participants of the economic bloc are not yet ready to challenge the dominance of the dollar.

"Developing something alternative is more of a medium- or long—term goal. Right now there are no proposals to create a BRICS currency," Maasdorp said. He added that even the Chinese yuan "is still very far from becoming a reserve currency."

In addition to the main BRICS countries, the bank ($50 billion of capital) already includes Bangladesh and the United Arab Emirates. Uruguay is in the process of joining, and Saudi Arabia has applied for membership. "Our goal was to create a global bank focused on emerging markets," Maasdorp said.

The new Development Bank of the BRICS countries (Brazil, Russia, India, China and South Africa) started its work in 2015. It was created to finance projects in the member countries of the organization and in developing countries. In 2021, Bangladesh, Egypt, the United Arab Emirates and Uruguay joined the bank. On May 23, the chairman of VEB.At the Russian-Chinese Business Forum in Shanghai, Igor Shuvalov called for the creation of a new settlement system in the currencies of the SCO and BRICS countries.

Link to source: https://www.bloomberg.com/news/articles/2023-07-05/brics-has-no-immediate-plan-for-a-currency-cfo-of...