2023-05-11 08:52:56
The leaders of the BRICS countries will discuss the possibility of introducing a single currency at the summit in August in South Africa. This was announced by the Minister of Foreign Affairs of the African country Naledi Pandor.
According to her, a single currency within the bloc is an issue that needs to be “discussed properly.” “I don’t think we should always assume that this idea will work, because the economy is very complex and you have to consider all countries, especially in a low growth situation when you come out of crises,” she said in an interview. Bloomberg.
Ms. Pandor added that the discussion regarding the single currency is caused by discussions within the BRICS countries regarding why they cannot use their own currencies instead of the US dollar in trade among themselves.
The head of the South African Central Bank, Lesetja Kganyago, explained in a commentary to Bloomberg that the creation of a single currency would lead to discussions on the creation of a single BRICS bank. “I don’t know how we’re going to talk regarding a currency issued by a block of countries that are in different geographic locations, because currencies are national in nature. For the euro area to come to this, they had to conclude an agreement under which all countries had to surrender their currencies, ”he said.
BRICS includes Brazil, Russia, India, China and South Africa. Bloomberg, citing data from the International Monetary Fund, wrote that by 2028 their contribution to global economic growth will be 33.6% of the global indicator. According to the IMF, China will play the main role in the growth of the world economy in the next five years.
More details – in the material “Kommersant” “The division of the world economy.”
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