Putin introduces new ‘BRICS currency’ at 16th Summit
Date
10/28/2024 8:16:52 AM
(MENAFN) At the 16th BRICS Summit, Russian President Vladimir Putin surprised the international community by introducing a new currency, the "BRICS currency," as a preparatory step for use in trade transactions among the group’s member countries. This move has generated both excitement and anxiety, particularly in Western circles, where concerns are growing over potential impacts on the euro and the U.S. dollar.
President Putin also proposed a new financial platform for the BRICS nations, aiming to curb inflation, manage rising prices, bolster each country’s national economy, and secure essential resources. He emphasized the group’s commitment to unifying financial transactions among members while gradually reducing reliance on the U.S. dollar for interbank exchanges.
The new BRICS currency, as described by Putin, is currently a symbolic banknote adorned with artwork representing joint efforts within the group and features the flags of Brazil, Russia, India, China, and South Africa. According to Kremlin spokesperson Dmitry Peskov, Putin reviewed the currency at the summit and passed it to Elvira Nabiullina, head of Russia’s Central Bank. A Russian institution, potentially the Chamber of Commerce and Industry, was responsible for printing this symbolic note.
In response, IMF Managing Director Kristalina Georgieva commented from Washington, during the IMF and World Bank annual meetings, that creating a shared payment system among countries is not a novel concept. However, she noted that more specifics are necessary to determine how it could become a practical reality. Between BRICS members’ ambitions and potential Western opposition, experts believe the establishment of a BRICS currency could happen, though it would likely require years to materialize.
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