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hullopilllw

hullopilllw

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Strangelove said:
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It will be based on a currency basket of the five-nation bloc, according to the Russian president

President Vladimir Putin said on Wednesday that the BRICS countries – Brazil, Russia, India, China, and South Africa – are currently working on setting up a new global reserve currency.

“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” he said at the BRICS business forum.

According to the Russian president, the member states are also developing reliable alternative mechanisms for international payments.
Earlier, the group said it was working on setting up a joint payment network to cut reliance on the Western financial system. The BRICS countries have been also boosting the use of local currencies in mutual trade.
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What will happen to the basket allocation when the next wave of members join ? Say, Argentina and Turkey. Having those currencies in the weight basket can be destabilising due to volatility.
 
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Rettam Stacf

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Overbom said:
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BRICS has not been in the limelight for several years. But the Ukraine conflict and subsequent global economic chaos changed that.

It will be of significant geopolitical interest to see who, if any, get formally invited to join BRICS at the upcoming summit. It will indicate how and where China wants to take BRICS to as a counter to the influence of G7.
 
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FriedButter

FriedButter

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hullopilllw said:
What will happen to the basket allocation when the next wave of members join ? Say, Argentina and Turkey. Having those currencies in the weight basket can be destabilising due to volatility.
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I don’t think they would be included but my concern is how vulnerable is it to foreign interference. What’s going to stop the West from launching an economic torpedo to say India or Brazil during a Recession in China for example. Just like the EU with their soft underbelly (Greece/Cyprus/etc).
 
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Overbom

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Good idea but unfortunately it cannot happen. India will never agree
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Trade between Brazil, Russia, China, India and South Africa has huge potential to expand, as it accounts for only 6 per cent of the countries’ combined trade today, despite major emerging economies contributing to about one-fifth of global trade, said vice-commerce minister Wang Shouwen.
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“To build a free-trade agreement is a very important means to tap this trade potential, which China is willing to discuss with other BRICS countries,” he told a panel at the BRICS Business Forum on Wednesday.
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