International
Common currency: BRICS want to de-dollarize the world economy
Wednesday, August 23, 2023 – 12:33 p.m.
The developing powers of the Brics countries (Brazil, Russia, India, China, South Africa), which met at a summit in Johannesburg, enter the center of discussions on the creation of a common currency on Wednesday, August 23, 2023.
The countries of the bloc have a common demand for a more inclusive global political and economic balance, especially towards the United States and the European Union, which, according to them, is undergoing “de-dollarization” of the world economy.
In this regard, Brazilian President Lula da Silva said that discussions on a common currency for cross-border trade between the BRICS countries should not come at the expense of national currencies.
“In order to increase investment and support development, we need to ensure greater credibility, predictability and legal certainty, as well as political and social certainty for the private sector. For this reason, I advocated the idea of increased financial integration, where we could have a trading unit that would not replace our national currencies,” he said.
The dollar accounts for 44% of currency transactions and maintains its dominance in global finance and trade.
Already in 2009, the BRICs (then only four) called for the creation of a new global currency, an alternative to the dollar, without seeing the light of day since then.
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