• The BRICS group of nations is considering the feasibility of a new global currency to reduce reliance on the US dollar.
• South Africa’s Minister of International Relations and Cooperation, Naledi Pandor, emphasizes the need for careful discussion and examination of the pros and cons of a new currency.
• Other nations have expressed interest in joining BRICS and participating in the discussions on a new global currency.
BRICS Nations Consider New Currency
The BRICS group of nations are currently exploring the possibility of creating a new common currency to reduce reliance on the US dollar. South Africa’s foreign minister, Naledi Pandor, has stressed that any such change must involve thorough deliberation and cautious approach before it is implemented.
Interest From Other Nations
In addition to the five current members, more than a dozen countries have expressed interest in joining BRICS and taking part in discussions on a potential new global currency. These include Saudi Arabia, Iran, Argentina, United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia and two unnamed East African and West African nations.
Pros & Cons Of A New Currency
Minister Pandor acknowledges that any proposed change needs to consider both positive and negative aspects before being adopted. She also recognizes the value of open discussions between all interested countries as they face challenging economic times ahead due to low growth in many markets.
Russia appears to be taking a more proactive stance when compared with other members – Anatoly Aksakov , Chairman of Russia’s State Duma Committee on Financial Market has indicated that negotiations for an alternative currency could launch this year itself.
Ultimately it remains unclear if or when any significant changes will take place with regard to introducing an alternative international currency system but there is certainly an increasing demand among certain countries to seek alternatives outside of American-dominated financial systems.