South Africa’s finance minister, who also leads his counterparts in Brazil, Russia, India and China, believes that the mooted development of a BRICS common currency is a non-starter. The US dollar still has a firm place in the global economy.
The mooted development of a common currency by the BRICS group of emerging nations and an alternative payment system so that they rely less on the mighty US dollar is increasingly viewed as a non-starter by prominent decision makers.
Finance Minister Enoch Godongwana is the latest to pour cold water on proposals for BRICS nations – Brazil, Russia, India, China and South Africa – to dethrone the US dollar, saying it is not a consideration at a policy level, or even feasible soon.
“I think most of the hullabaloo about the BRICS currency is a debate which is misplaced. This is something that we’re not discussing at all. So, for now, it’s too early to even venture into that debate,” said Godongwana in a Daily Maverick interview.
He said the proposals for a common currency and alternative payment system were initially presented for debate to the BRICS heads of state, who then referred it to the finance ministers of the emerging nations to probe its merits.
“The ministers of finance are preoccupied with different things than common currency. We are not likely to find each other easier on the common currency question,” said Godongwana, who chairs the BRICS workstream of…
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