BRICS currency: Expert weighs in on implications for Rand & Dollar
What would a new BRICS currency look like – and what steps would the leaders take to get the ball rolling on one? An economist weighs in
As more than 30 heads of state prepare to touch down on Johannesburg, Sandton for the 15th BRICS Summit this week, there is growing questions around one of the key issues set to be on the agenda – a new BRICS currency.
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CAN BRICS CURRENCY CHALLENGE THE U.S DOLLAR?
According to Brazilian economist Paulo Noguiero Batista, the BRICS leaders would ideally instruct their respective finance ministers to look at the feasibility of a new currency. He reckons the dollar will likely remain a strong currency in the global economic landscape, regardless of how a new BRICS currency would fair.
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Speaking to Newzroom Afrika, Batista says what would likely happen is a multi-polarisation of the currency system.
“If the BRICS countries get together and put into circulation a solid alternative currency, this will be important as well. The dollar will still be there. It will just no longer be the hegemonic currency that it has been since the second world war. Why? Because the dollar has a very important enemy. When the United States uses the dollar, politically, to target countries that it deems hostile, it harms the credibility of the currency and of its own financial system”Brazilian economist Paulo Noguiero Batista
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WHO WILL ATTEND BRICS SUMMIT?
President Cyril Ramaphosa and his counterparts will have much to talk about at the summit, including at least 20 bids by different countries to join the grouping.
Ramaphosa, China’s Xi Jinping, Indian Prime Minister Narendra Modi will attend the event. Russian President Vladimir Putin will not be jetting down to Johannesburg for the event, but will attend virtually due to a warrant of his arrest issued by the International Criminal Court for the war in Ukraine. The Kremlin will be represented by the country’s Foreign Minister Sergei Lavrov, who will be present.
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Leaders of a number of other developing economies will also be in attendance.
Addressing the nation ahead of the summit on Monday, 20 August 2023, Ramaphosa said he supports the expansion of BRICS members in order to create a more balanced global order.
