The governor of Russia’s central bank says the creation of a common BRICS currency “requires the consent of many parties.” While emphasizing that the proposed BRICS currency “deserves attention,” the Russian central bank chief cautioned that this project is challenging and “will be quite difficult to implement.”
Bank of Russia Governor on BRICS Currency
Bank of Russia Governor Elvira Nabiullina talked about the proposed BRICS currency on the sidelines of the central bank’s annual Financial Congress, which took place on July 6-7 in St. Petersburg. The BRICS economic bloc comprises Brazil, Russia, India, China, and South Africa.
The BRICS currency initiative is expected to be one of the topics discussed at the upcoming BRICS leaders’ summit in South Africa that’s scheduled for Aug. 22-24. The proposal gained much attention over the past week when Russian news outlet RT reported that Russia has confirmed the BRICS is launching a gold-backed currency. However, no BRICS officials have officially announced or corroborated the news.
The Russian central bank chief told reporters (translated by Google) that the idea of a BRICS currency “deserves attention.” However, she stressed that this project “will be quite difficult to implement,” emphasizing: “Like any idea of a supranational currency, it requires the consent of many parties. This is not a simple project at all.” Nabiullina continued:
“Therefore, we are still working and concentrating our efforts on the development of bilateral settlements using the national currency, the development of the infrastructure that connects our payment systems, what businesses need today.”
While RT claimed that Russia has confirmed that the common BRICS currency will be backed by gold, a top official of the New Development Bank, also known as the BRICS Bank, has stated that the creation of any alternative to the U.S. dollar is a medium to long-term aspiration. According to him, “No one is suggesting right now that BRICS will form an alternate currency.” Nonetheless, many people expect a common BRICS currency to erode the dominance of the U.S. dollar.