BRICS rules out new currency, focuses on lowering transaction costs

Brazil’s Foreign Minister Mauro Vieira has said that the BRICS group has dismissed the idea of creating a new currency to replace existing ones, reaffirming its focus on facilitating transactions with lower costs.

"There is no project to replace or create new currencies. The only interest is in conducting transactions with lower costs," Vieira explained, addressing concerns over the possibility of a new BRICS currency, Caliber.Az reports via Russian media. 

Vieira clarified that discussions within the bloc are centred on the use of national currencies for mutual transactions, rather than introducing a common currency. This approach aims to simplify trade between BRICS nations while avoiding the complexities of creating a new unified monetary system.

The minister also stressed that the BRICS group is not in opposition to any other countries or regional blocs.

"BRICS is not against anyone, any bloc, or any country. BRICS advocates for the unity and development of nations from the so-called Global South," Vieira stated. 

Additionally, Vieira highlighted the importance of the ongoing foreign ministers’ meeting in Rio de Janeiro, marking the first plenary session where all BRICS member states and partner countries have gathered together.

"This shows the growing international interest in the BRICS group," he remarked. 

Earlier, Russian Foreign Minister Sergei Lavrov stated that the idea of creating a unified BRICS currency could only be reconsidered once the necessary economic conditions are in place.

“It is premature to talk about BRICS adopting a single currency. The issue of a common currency or settlement unit for BRICS could be reconsidered when the appropriate financial and economic conditions are established,” Lavrov said. 

He also noted that discussions are ongoing among BRICS countries to expand the use of national currencies in transactions, and infrastructure is being developed for cross-border payments. One of the key trends in the global economy is de-dollarisation, which he attributed to growing mistrust in international financial mechanisms controlled by the West.

By Naila Huseynova