BRICS Leader Says Talk of New Global Currency Entering As Countries Question US Dollar Dependency: Report
South Africa’s foreign minister said a group of economically aligned nations known as the BRICS would investigate whether a new global currency would allow them to effectively secede from the US dollar.
According to Bloomberg, the group of countries, which includes Brazil, Russia, India, China and South Africa, plans to “discuss the feasibility” of a new global currency.
South Africa’s Minister for International Relations and Cooperation, Naledi Pandor, said BRICS members and other countries interested in joining the group questioned the need to transact in US dollars.
“(They) ask why we can’t trade with our own currency?” Why are we so dedicated to trading dollars? South Africa has a currency that is traded on international markets. However, because we have a lot of debt in dollars, you know we have to handle this matter carefully.” According to Minister Pandor, the pros and cons of a new currency should be widely debated.
“I don’t like to overshadow the discussions of the BRICS leaders.” This is a matter that must be thoroughly discussed. I don’t think we can always assume that the plan will work because the economy is complex and you have to consider all countries, especially when you are recovering from a crisis.”
South Africa’s approach to a new currency may be more conservative than Russia’s.
Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets in Russia, recently stated that negotiations for a new currency are “at an early stage”, and that the currency will probably be launched as early as this year.
More than a dozen countries are said to be interested in joining the BRICS. Saudi Arabia, Iran, Argentina, United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, two unnamed East African countries and one unnamed West African country are on the list.