As part of an ambitious project to change the global financial landscape, the BRICS countries are in the process of developing a new currency. This was stated by Anatoliy Otyrba, professor at the Academy of Geopolitical Problems and TV BRICS expert. This strategic initiative aims to strengthen economic cooperation between the member countries. The emergence of the new currency can be a game changer in international trade and finance.

The vision behind the new BRICS currency

The vision behind the BRICS currency stems from the desire to create a more balanced and multipolar global economy. Experts underline that by creating new currencies, the BRICS countries aim to:

strengthen economic sovereignty;
improve trade relations: to promote smoother and more efficient trade between member countries;
increase financial stability and reduce the risks associated with currency fluctuations.

Steps towards project implementation

Anatoliy Otyrba also added that the task of creating a new supranational unit of account was already set at the 15th BRICS Summit, which took place in South Africa from August 22 to 24, 2023. Humanity has realised its necessity and is in search of its optimal variant.

“Finance covers all spheres of countries’ lives; the creation of a new, common currency will require states to agree on hundreds, and possibly thousands, of parameters, which will take at least years.”

The introduction of the new BRICS currency might mark a turning point in the global economy. While the road ahead is fraught with challenges, the potential benefits of a more balanced and diversified global financial system might be significant.

Sergey Glazyev, Minister in Charge of Integration and Macroeconomics of the Eurasian Economic Commission, said in an exclusive interview with TV BRICS that BRICS has a model for such a currency. It is based not only on a basket of the national currencies of the member countries but also on a basket of exchange-traded commodities.

“The first basket is formed automatically on the basis of the Pool of Currency Reserves, which has long been created, and we don’t need to invent anything new. It is simply formed on the basis of the basis of the pool of currency reserves of the BRICS countries, on the basis of which a new currency is issued. The second basket is a basket of exchange-traded commodities. In order for this currency to be backed not only by the national currencies of the member countries but also by something more serious and material, we, as countries that produce and consume most of the world’s exchange commodities, can well form the necessary amount of reserves in these commodities to ensure that they provide and back up this new international settlement currency.”

Sergey Glazyev Minister in Charge of Integration and Macroeconomics of the Eurasian Economic Commission

He added that it is necessary to sign the relevant legal documents that will determine who issues this currency, in what volumes it is issued, what are the rules for issuing this currency, and how settlements are conducted in it.

Experts say that if businesses and investors are informed and prepared, they will be able to navigate the changing landscape and capitalise on the opportunities presented by this revolutionary event.

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