Russian Finance Minister Anton Siluanov said that instead of considering the BRICS currency as an alternative currency, "we will initially work to settle trade between the BRICS countries, and this could, in theory, create conditions for stronger monetary relations between the member states," according to UNHERD website.
Reports from South Africa indicate that the plan may be to focus the currency on the New Development Bank, and since it will be the focal point of the currency, it is worth considering the nature and history of the institution.
What is the New Development Bank?
According to the report, the bank was initially set up to help countries access development funds, which made it look more like an alternative to the World Bank than the International Monetary Fund, but, recent plans indicate that it may end up playing both roles simultaneously.
The report indicated that the bank's headquarters is located in Shanghai.
The report expressed the West's fears of this step, as the report said, "What we may witness is the emergence of a technocratic trade and economic bloc to a large extent similar to the Bretton Woods system after 1945, which would signal the beginning of a new era."
BRICS is made up of 5 members: South Africa, Brazil, Russia, India and China.
The foreign ministers of Iran, Argentina, Bangladesh, Comoros, Cuba, Burundi, Congo, Egypt, Gabon, Guinea, Indonesia, Kazakhstan, Saudi Arabia, the United Arab Emirates and Uruguay also participated in the meeting of foreign ministers of BRICS friends in Cape Town, which was held recently, to discuss the BRICS currency file.
Yesterday, Iranian Foreign Minister Hossein Amir Abdollahian announced that BRICS members welcomed his country's accession to this group.
Two days ago, the American magazine "Newsweek" confirmed, in an article, that the growth of the "BRICS" bloc accelerates the decline of the global influence of the United States.
The magazine pointed out that the expanding BRICS economic group is receiving more requests than ever before, at a time when the United States is struggling to maintain its influence in the global south, pointing to a growing shift in the international economic system.
Senior diplomats from the "BRICS" group began a high-level meeting on Thursday, in preparation for the 15th annual summit of leaders, scheduled for next August.
Related to this matter, a US expert prdicted that a BRICS-sponsored currency could further displace the US dollar.
Joseph W. Sullivan, a senior advisor at the Lindsey Group and a former special advisor and staff economist at the White House Council of Economic Advisers during the Trump administration wrote in Foreign policy that a BRICS currency could shake the dollar's dominance.
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