FameEX Hot Topics | Indian Official: BRICS' Priority Does Not Include Developing Common Currency

An influential Indian official has emphasized that the immediate establishment of a unified currency within the BRICS alliance is not of foremost importance. This stance is driven by the recognition of essential prerequisites that must be met before embarking on such a complex endeavor. The official, representative of the BRICS nations—Brazil, Russia, India, China, and South Africa—stressed that their primary focus has revolved around fostering financial interactions using their individual national currencies.

During a recent media briefing, Indian Foreign Secretary Vinay Mohan Kwatra shed light on the prevalent discussions within the BRICS economic coalition. These discussions have predominantly centered on augmenting trade activities conducted in the respective national currencies of the member states. Kwatra, as reported by the Indian news outlet Mint, acknowledged the intricate nature of establishing a shared currency framework. He stated: "The substantive part of trade and economic exchanges and discussions that have been a part of BRICS discussions have so far, in a major way, focused on how to increase trade in respective national currencies which… is considerably different from a common currency concept."

Kwatra notably underscored that the framework of dialogues within the BRICS alliance has placed a significant emphasis on bolstering trade conducted through national currencies. He highlighted the multifaceted prerequisites that necessitate careful consideration before venturing into the development of a shared currency. This perspective aligns with India's Minister of External Affairs, S. Jaishankar, who had previously clarified that active discussions regarding a common currency among the BRICS nations were not underway. Looking ahead, the forthcoming BRICS summit, hosted by South Africa, is slated to occur from August 22 to 24 in Johannesburg. While speculations have emerged about potential discussions regarding a common currency among BRICS leaders, a senior South African diplomat responsible for BRICS relations has unequivocally confirmed that the topic will not be on the summit's agenda.

Despite some advocates, such as author Robert Kiyosaki, proposing that a common BRICS currency could potentially challenge the preeminence of the U.S. dollar, skepticism persists. British economist Lord Jim O'Neill, acknowledged for coining the BRIC acronym, has expressed a dismissive view of the shared currency notion, labeling it as "ridiculous" and "embarrassing."

In summary, a high-ranking Indian official has made it clear that crafting a common currency for the BRICS nations is not currently a central focus of their discussions. Rather, member states have directed their attention toward strengthening trade interactions conducted through their individual national currencies. The intricate prerequisites essential for creating a shared currency have been duly recognized. As the upcoming BRICS summit approaches, the discourse surrounding a common currency is not anticipated to be a primary agenda item, despite ongoing debates about its potential impact.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.