Member states are also developing reliable alternative mechanisms for international payments, he was reportedly told by Global Newswire.
Russian President Vladimir Putin recently said that the BRICS countries (Brazil, Russia, India, China, South Africa) are currently working on setting a new world reserve currency. “The problem of creating an international reserve currency based on our country’s basket of currencies has been resolved,” he said in the BRICS Business Forum.
Earlier, the group said it was working to establish a joint payment network to reduce its reliance on the Western financial system. BRICS countries are also supporting the use of local currencies in mutual trade.
However, former ambassador to Russia, DB Venkatesh Varma, said his currency is likely to play a larger role in trade within the BRICS, but expecting them to lead to a “de-dollarization” is “non-dollar.” Realistic. “
“The need for alternatives is so real that BRICS is taking a very important initiative in considering alternatives, but the key question is how quickly and which alternatives are. The dollar was very dominant, but especially since February of this year, excessive reliance on a single currency (the dollar as the world’s reserve currency) is a factor in the increased risk. There is growing awareness, but this risk cannot be addressed overnight, “Balma said. Work on a meeting of experts on international affairs between India and Russia.
Balma hinted that the fate of alternative reserve currencies would be exposed to market power beyond strong government control.
“Whatever mechanism the BRICS countries agree on, it must ultimately be accepted by the market. An important test is whether the international or domestic market in the BRICS will accept this mechanism. Government and central bank play. However, each central bank will evaluate each of these proposals in terms of whether it helps risk management and whether the market itself will ultimately accept them. ” Said.
Fiber2Fashion News Desk (DS)
BRICS working on a new world reserve currency: President Putin
Source link BRICS working on a new world reserve currency: President Putin