Is there a new BRICS currency? The world’s reserve currency faces a challenge from Global South countries who want options beyond the greenback.
BRICS is an acronym for five major emerging economies: Brazil, Russia, India, China, and South Africa.
These nations, which span four continents, collaborate on various economic, political, and strategic matters.
The group has held annual summits since 2009 and seeks to promote a multipolar world order and enhance the influence of emerging economies on the global stage.
The emerging nations bloc also established the New Development Bank (NDB), or BRICS Bank, in 2015 as an alternative to the International Monetary Fund and World Bank.
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BRICS Currency
During August’s summit, Brazil’s President Lula Da Silva proposed the bloc consider creating a BRICS currency.
But that was not on the agenda, so there were no declarations from other leaders on Da Silva’s proposal.
While there is no official BRICS currency, the bloc, which recently expanded to include Saudi Arabia, Ethiopia, Egypt, Argentina, Iran and the United Arab Emirates, does promote trading in local currencies.
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Oil sales exclude the dollar
Watcherguru reports a substantial 26% rise in oil sales between Russia and China. These transactions now exclude the use of US dollars.
Russia is now China’s top supplier of crude oil, with imports at 2.48 million barrels a day, the second-highest ever. This development is significant for the BRICS bloc due to Western sanctions on Russia and ongoing de-dollarization efforts.
In a landmark deal, India and the United Arab Emirates (UAE) have continued to shift away from the US dollar. Specifically, the countries agreed on a 1 million barrel oil deal conducted entirely in Indian rupees.
The BRICS bloc is now a significant player in global oil and energy markets. Eleven countries, including Saudi Arabia and the UAE, are prominent in oil production.
This development reinforces the BRICS bloc’s global leadership in oil and energy, with the potential to become the leading global energy leader.
BRICS Bonds
On the eve of the 15th BRICS Summit, hosted in South Africa in August, the NDB, established by the BRICS countries, issued its first South African bonds in that country’s currency.
According to a Reuters report, the NDB issued two bonds, a 1 billion rand five-year note and a 500 million rand three-year note, which garnered a total of 2.67 billion rand in bids.
