BRICS member India spoke about the BRICS currency formation that could make its way into the global markets. The timeline for the launch could be much longer than expected as the development has not picked up steam. The alliance floated the idea of a common currency in 2023 to take on the US dollar’s hegemony. Russian President Vladimir Putin also displayed a mock-up bill during the 16th summit in Kazan last year, indicating that its launch is imminent.
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India Spills the Beans on BRICS Currency Formation
Dammu Ravi, India’s Sherpa and Secretary (Economic Relations) in the Ministry of External Affairs spilled the beans on the currency formation. Ravi confirmed that the discussions and development of a common BRICS currency have not gone full-fledged but remain “at a very early stage.”
He revealed that the discussions are still in their nascent steps and have a long way to go for the formation. Therefore, the launch of a new BRICS common currency might take years, if not decades to turn reality. Despite floating the idea for more than two years, the alliance is still in the early stages of discussions.
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Moreover, the formation of a BRICS currency is consensus-based and all member nations need to agree to its development. The formation will take longer than expected as launching a new tender requires several policies and frameworks. It also needs a central bank that controls and manages the currency providing guidelines for its use cases and transactions.
The White House pressing sanctions on developing countries made the alliance to safeguard their economies from the US dollar. It gave rise to the idea of a BRICS currency but the formation shouldn’t be taken lightly by the US. Even if it is launched after 25 years, it still poses a threat to the US dollar’s global supremacy.
