FameEX Hot Topics | Indian Official Clarifies BRICS' Absence of Focus on Common Currency Creation

A prominent Indian official has underscored that the formation of a unified BRICS currency is not currently a priority. Highlighting the need for specific prerequisites before pursuing such an endeavor, the official emphasized that the focus of the BRICS nations—Brazil, Russia, India, China, and South Africa—has been on enhancing settlements using their own national currencies. In a media briefing, Indian Foreign Secretary Vinay Mohan Kwatra clarified that discussions within the BRICS economic bloc have predominantly centered on increasing trade conducted in the respective national currencies of member states, as reported by Indian news outlet Mint. Kwatra elaborated on the complexity of establishing a shared currency framework, stating:

"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 further stressed that the framework of discussions within BRICS has primarily concentrated on trade conducted in national currencies and acknowledged the multi-faceted prerequisites that precede the establishment of a common currency.

India's Minister of External Affairs, S. Jaishankar, had also previously clarified that no discussions regarding a common currency within the BRICS nations were underway. The upcoming BRICS summit, hosted by South Africa, is scheduled to take place from August 22 to 24 in Johannesburg. While speculation has arisen about the potential discussions on a shared currency among the BRICS leaders, a senior South African diplomat responsible for BRICS relations confirmed that the topic would not be on the summit's agenda.

Although some advocates, including author Robert Kiyosaki, believe that a common BRICS currency could challenge the dominance of the U.S. dollar, skepticism remains. British economist Lord Jim O'Neill, credited with coining the BRIC acronym, dismissed the idea of a shared currency as "ridiculous" and "embarrassing." In conclusion, a high-ranking Indian official has clarified that a common currency for the BRICS nations is not the focus of their current discussions. The member states have primarily concentrated on boosting trade within their national currencies, with the intricate nature of prerequisites needed for a shared currency being recognized. The upcoming BRICS summit is not expected to include discussions on a common currency, despite ongoing debates about its potential implications.

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