USA
Source: www.washingtonpost.com

The BRICS group of emerging markets — Brazil, Russia, India and China, with South Africa added later — has gone from a slogan dreamed up at an investment bank to a real-world club that also controls a major development bank. It once might have seemed ironic to see Communist Party-ruled China embrace the Wall Street conceit. But now dozens of countries of all political stripes, including Iran and Saudi Arabia, are clamoring to join, setting up potential friction at the club's Aug. 22-24 summit in Johannesburg.

1. How did BRIC(S) get started?

"BRIC" was coined in 2001 by economist Jim O'Neill, then at Goldman Sachs Group Inc., to draw attention to strong growth rates in Brazil, Russia, India and China. It was intended as an optimistic thesis for investors amid market pessimism following the terrorist attacks in the US on Sept. 11 that year. The four nations took the idea and ran with it. Their rapid growth at the time meant they had shared interests and common challenges. They were already cooperating in forums like the World Trade Organization and felt their influence in a US-dominated world order would be greater if their voices were combined. The first meeting of BRIC foreign ministers was organized by Russia on the sidelines of the United Nations General Assembly in 2006. The group held its first leaders' summit in 2009. South Africa was invited to join at the end of 2010, extending membership to another continent.

2. What does BRICS do?

The biggest concrete achievements have been financial. The countries agreed to pool $100 billion of foreign currency, which they can lend to each other during emergencies. That liquidity facility became operational in 2016. They founded the New Development Bank — a World Bank-inspired institution that has approved more than $30 billion of loans for projects like water and transport infrastructure since it began operations in 2015. (South Africa borrowed $1 billion in 2020 to fight the Covid-19 pandemic.) They plan to discuss the feasibility of a common BRICS currency this year. Economically, Brazil and Russia's natural resources and farm products make them natural partners for Chinese demand. India and China have weaker trade connections with each other, partly due to political rivalries and an acrimonious border dispute. Like other multilateral forums such as the Group of Seven – the annual BRICS summits and dozens of other lower-level meetings produce joint statements that proclaim broad agreement, but lack specifics. The biggest obstacle there is that the countries have diverging interests on major political and security issues — including relations with the US — and different governing systems and ideologies.

3. Who's in charge?

Economically, China's gross domestic product is more than twice the size of all four other members combined. In theory, that should give it the most sway. In practice, India — which recently surpassed China in population — has been a counterweight. To take two examples: BRICS has not formally endorsed China's big development push called the Belt and Road Initiative, partly because India objects to Belt and Road infrastructure projects in disputed territory held by Pakistan, its neighbor and arch rival. On the New Development Bank, there's no dominant shareholder: Beijing agreed to the equal holdings advocated by New Delhi. The bank is headquartered in Shanghai, but has been led by an Indian and now, Brazil's former President Dilma Rousseff.

4. Is Russia still a member?

Yes, Russia remained a BRICS member despite its invasion of Ukraine in 2022. That year's BRICS leaders summit was held online, and Putin participated. The other BRICS countries have adopted a broadly neutral stance toward the war, viewing it as more of a regional issue than a global crisis. However, the war has changed Russia's relations with BRICS institutions. The New Development Bank quickly froze Russian projects and Moscow has not been able to access dollars via the BRICS shared foreign currency system. Essentially, with US sanctions piling up, other BRICS countries prioritized ongoing access to the dollar-based financial system over helping Russia. Putin won't attend this year's summit in person but will participate by video conference. That will spare the South African government from having to decide whether to execute an arrest warrant for alleged war crimes issued by the International Criminal Court.

5. How does it differ from things like the G-20 or Global South?

Generally speaking, BRICS is similar to clubs such as the Group of 20 in representing a move toward a more multipolar world and away from one dominated by the US since the end of the Cold War, as exercised through clubs like the G-7 and World Bank. Other multilateral groupings arguably gaining influence as part of the trend include OPEC, the Shanghai Cooperation Organization, the Southern Common Market (Mercosur), and the African Union. "Global South" isn't a club at all but a term that's gained currency in recent years to refer to relatively poor countries, also referred to sometimes as developing or emerging. It's typically contrasted with a "Global North" composed of the US, Europe and some wealthy countries in Asia and the Pacific. But the relationship between the two concepts isn't straightforward. For example, the European Union, firmly part of the Global North, could gain more influence in a multipolar world. China considers itself a developing country, although its status as the world's second-largest economy with a large middle class makes that classification an awkward fit. The G-7 invited Brazil, India and Indonesia to attend its leaders summit this year, in what officials said was an attempt to reach out to the Global South.

6. Who wants to join and why?

China, which has been seeking to raise its profile on the global stage and counter Western influence, initiated the conversation about expansion in earnest when it chaired the group last year, triggering concern among other members that their own influence could be diluted. The proposal will be a main focus at this year's summit, according to Anil Sooklal, ambassador from South Africa, which is chairing. More than 40 countries have expressed an interest and, of those, 22 have formally asked to join, including Argentina and "all the major Global South countries," he said on July 20. Saudi Arabia, Iran, Bangladesh and the United Arab Emirates are among those interested, he added. For new entrants, being part of BRICS could expand their diplomatic influence and open up lucrative trade and investment opportunities.

7. Are there still BRICS funds or is the concept dead as an investment strategy?

There's still intense interest in emerging markets among investors. But while a nice idea two decades ago, BRICS is largely irrelevant as an investment theme today due to geopolitical changes and the members' different economic trajectories. Except for India, the BRICS have underperformed their emerging markets peers over the last five years, according to Bloomberg Intelligence. US-led sanctions have made Russia uninvestable, and segments of China — especially technology companies — have also been sanctioned or face potential investment bans. China also is a maturing economy, increasingly separated from other emerging markets and facing a structural slowdown. Brazil's economy slowed markedly following the end of a global commodity boom about a decade ago, while South Africa's has been subjected to years of rolling power blackouts because the state utility can't produce enough electricity to meet demand. India is still a growth story that investment banks now compare with China 10 or 15 years ago, though its unclear if it can follow China's manufacturing-led model.


--With assistance from Gina Martin Adams, Marvin M Chen and Mike Cohen.

China
Source: global.chinadaily.com.cn

The discussion on expanding BRICS, the grouping of Brazil, Russia, India, China and South Africa, is expected to be high on the agenda of an upcoming meeting of senior officials to prepare for the BRICS Summit in August, observers said.

They also said that since its inception in 2006 as BRIC (South Africa was added in 2010), the group of emerging economies has upheld the spirit of openness, inclusiveness and win-win cooperation, practiced true multilateralism and achieved solid results in pragmatic cooperation, thus becoming increasingly attractive to other countries.

China has sent Wang Yi, director of the Office of the Foreign Affairs Commission of the Communist Party of China Central Committee, to attend the 13th Meeting of BRICS National Security Advisers and High Representatives on National Security in Johannesburg, South Africa, on Monday and Tuesday.

South Africa is this year's BRICS chair. According to Anil Sooklal, the country's ambassador to the group, more than 40 countries, including all the major developing Global South countries, have expressed interest in becoming BRICS members, and 22 countries have formally asked to join.

South African President Cyril Ramaphosa has also invited the heads of all African countries to the upcoming BRICS Summit in Johannesburg to engage in dialogue with BRICS leaders.

"With the joining of more developing countries, BRICS is expected to better represent the Global South with a louder voice on the world stage," said Yao Jinxiang, an assistant researcher at the China Institute of International Studies' Institute of Developing Countries.

While BRICS members account for 42 percent of the world's population, they have less than 15 percent of voting rights in the World Bank and the International Monetary Fund.

"African countries and BRICS nations share similar views and interests in improving and reforming the current international order and global governance system. Africa as a whole can make a joint call with BRICS for accelerating reforms in financial, monetary and other sectors," Yao said.

He Wenping, a senior researcher at the Chinese Academy of Social Sciences' Institute of West-Asian and African Studies, said that to join or cooperate with BRICS will help Africa expand cooperation with more emerging economies and developing countries.

"For example, the BRICS New Development Bank can provide Africa with more opportunities in trade and economy, investment and financial assistance, among other things," she said.

She said China and Africa are also expected during Wang's visit to find common ground on how to resolve the Ukraine crisis.

According to the researcher, as the crisis continues, inflation as well as energy and food crises triggered by Western sanctions have had a negative impact on African countries.

"Africa and China have highly consistent positions regarding the crisis, and the two sides can play a joint role in promoting peace talks," she added.

Besides the two-day BRICS meeting in Johannesburg, China-Africa cooperation is also on the agenda of Wang's trip, which has taken him to Ethiopia and Kenya.

Wang reiterated China's commitment to cooperation with Africa under the frameworks of the Belt and Road Initiative and the Forum on China-Africa Cooperation in meetings with Ethiopian Prime Minister Abiy Ahmed and Kenyan President William Ruto.

They spoke highly of the mutual respect that China has shown in its cooperation with African countries and hailed China as an example for developing countries.

The visits to Africa by high-ranking Chinese officials highlighted the great importance that China places on its relationship with Africa as well as its efforts to promote African integration, said He, the senior researcher at the CASS.

According to Yao, from the China Institute of International Studies, "While some officials from the United States and other Western countries only make groundless criticism of China during their visits to Africa, we can tell from Wang's trip that China is more focused on pragmatic cooperation with Africa based on mutual benefits."

"China-Africa cooperation does not target a third party nor engage in so-called 'geopolitical confrontation'," Yao said.

Yao noted that countries on Wang's itinerary are all important countries in Africa, but are currently facing challenges such as power shortages, public health crises, the rise of terrorism and internal military turmoil.

The visit is also aimed at helping these countries cope with such crises, as China fulfills its duties as a responsible major country, Yao said.

South Africa
Source: www.brics2023.gov.za

SOUTH AFRICA FINALISES 15TH BRICS SUMMIT FORMAT

President Cyril Ramaphosa has confirmed South Africa's readiness to host the historic XV Summit of BRICS nations – Brazil, Russia, India, China and South Africa. It will be the first BRICS Summit to be hosted in person since the emergence of the COVID-19 pandemic and the subsequent global restrictions.

President Ramaphosa has in recent months and weeks held a number of consultations on the hosting of the Summit. The President's most recent consultation in this regard took place last night, Tuesday 18 July 2023, at the BRICS Political Party Dialogue in Gauteng.

The Summit will be attended by the leaders of Brazil, India, China and South Africa.

By mutual agreement, President Vladimir Putin of the Russian Federation will not attend the Summit but the Russian Federation will be represented by Foreign Minister Mr Sergey Lavrov.

In due course, a comprehensive statement on the substantive issues to be covered at the Summit and other related foreign policy matters will be issued.

President Ramaphosa is confident that the Summit will be a success and calls on the nation to extend the necessary hospitality to the many delegates who will arrive from various parts of the continent and the globe.

Media enquiries:

Vincent Magwenya, Spokesperson to President Ramaphosa - +27 82 835 6315

ISSUED BY THE PRESIDENCY OF THE REPUBLIC OF SOUTH AFRICA

Pretoria

Russia
Source: en.interaffairs.ru

Twenty two nations have formally applied to become members of the BRICS economic bloc, a South African diplomat said.

An equal number have also informally sought to join the organization that groups Brazil, Russia, India, China and South Africa, Anil Sooklal, the bloc's ambassador from South Africa, told reporters in Johannesburg.

Sooklal has previously said that countries including Saudi Arabia and Iran have formally asked to become BRICS members, while countries that expressed an interest in joining include the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia and others.

Here is an overview of the history of the creation and practical actions of BRICS by Bloomberg:

- The BRICS group of emerging markets — Brazil, Russia, India and China, with South Africa added later — has gone from a slogan dreamed up at an investment bank to a real-world club that also controls a major development bank. It once might have seemed ironic to see Communist Party-ruled China embrace the Wall Street conceit. But now countries of all political stripes, including Iran and Saudi Arabia, are clamoring to join, setting up potential friction at the club's Aug. 22-24 summit in Johannesburg.

- "BRIC" was coined in 2001 by economist Jim O'Neill, then at Goldman Sachs Group Inc., to draw attention to strong growth rates in Brazil, Russia, India and China. It was intended as an optimistic thesis for investors amid market pessimism following the terrorist attacks in the US on Sept. 11 that year. The four nations took the idea and ran with it. Their rapid growth at the time meant they had shared interests and common challenges. They were already cooperating in forums like the World Trade Organization and felt their influence in a US-dominated world order would be greater if their voices were combined. The first meeting of BRIC foreign ministers was organized by Russia on the sidelines of the United Nations General Assembly in 2006. The group held its first leaders' summit in 2009. South Africa was invited to join at the end of 2010, extending membership to another continent.

- The biggest concrete achievements have been financial. The countries agreed to pool $100 billion of foreign currency, which they can lend to each other during emergencies. That liquidity facility became operational in 2016. They founded the New Development Bank — a World Bank-inspired institution that has approved more than $30 billion of loans for projects like water and transport infrastructure since it began operations in 2015. (South Africa borrowed $1 billion in 2020 to fight the Covid-19 pandemic.) They plan to discuss the feasibility of a common BRICS currency this year. Economically, Brazil and Russia's natural resources and farm products make them natural partners for Chinese demand. India and China have weaker trade connections with each other, partly due to political rivalries and an acrimonious border dispute.

- Economically, China's gross domestic product is more than twice the size of all four other members combined. In theory, that should give it the most sway. In practice, India — which recently surpassed China in population — has been a counterweight. To take two examples: BRICS has not formally endorsed China's big development push called the Belt and Road Initiative, partly because India objects to Belt and Road infrastructure projects in disputed territory held by Pakistan, its neighbor and arch rival. On the New Development Bank, there's no dominant shareholder: Beijing agreed to the equal holdings advocated by New Delhi. The bank is headquartered in Shanghai, but has been led by an Indian and now, Brazil's former President Dilma Rousseff.

- Generally speaking, BRICS is similar to clubs such as the Group of 20 in representing a move toward a more multipolar world and away from one dominated by the US since the end of the Cold War, as exercised through clubs like the G-7 and World Bank. "Global South" isn't a club at all but a term that's gained currency in recent years to refer to relatively poor countries, also referred to sometimes as developing or emerging. It's typically contrasted with a "Global North" composed of the US, Europe and some wealthy countries in Asia and the Pacific.



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South Africa
Source: /www.reuters.com

JOHANNESBURG, July 20 (Reuters) - A BRICS currency will not be on the agenda of the bloc's summit in South Africa next month, but Brazil, Russia, India, China and South Africa will continue to switch away from the U.S. dollar, South Africa's senior BRICS diplomat said on Thursday.

"There's never been talk of a BRICS currency, it's not on the agenda," Anil Sooklal, South Africa's Ambassador at Large: Asia and BRICS, told a media briefing.

"What we have said and we continue to deepen is trading in local currencies and settlement in local currencies."

Brazil's President Luiz Inacio Lula da Silva and Russian foreign minister Sergei Lavrov are among BRICS leaders that touted the idea of a common currency as the bloc aims to challenge the western dominance of global finance amid Russia's sanctions-imposed exile after it invaded Ukraine last year.

This has pushed countries to find alternatives to the dollar, especially among non-U.S. allies.

However, India's foreign minister said earlier this month that currencies would remain "very much a national issue for a long time to come", while South Africa's central bank governor has pointed out that a common currency requires a banking union, a fiscal union and macroeconomic convergence.

"BRICS started a process that has been expedited as a result of the conflict, as a result of unilateral sanctions," Sooklal said. "The days of a dollar centric world is over, that's a reality. We have a multipolar global trading system today."

Greece
Source: moderndiplomacy.eu

Bangladesh has shown interest to become a member of the BRICS (Brazil, Russia, India, China, and South Africa) bloc. Although some of the bloc members seek to establish an alternative global order that challenges the prevailing dominance of the United States and the US dollar, Bangladesh is currently evaluating the economic advantages of its membership within the bloc and not engaging into any bloc confrontation.

Bangladesh is presently engaged in the pursuit of economic diplomacy as a means to implement Vision 2041 and achieve the status of a developed economy. Subsequently, Bangladesh has undertaken multiple initiatives to organize its economy and infrastructure. Moreover, Bangladesh's decision to align with BRICS encompasses various dimensions, including diplomatic, political, and economic considerations.

The BRICS countries have the potential to enhance economic cooperation and trade opportunities for Bangladesh. The BRICS nations collectively possess a population exceeding 3 billion and hold a substantial portion of the global GDP. Currently, Bangladesh has GDP of USD 425.5 billion and growth rate of 5.3%. The inclusion of Bangladesh in BRICS has the potential to bolster its trade relations, entice foreign direct investment (FDI), and facilitate access to untapped export markets. In April 2023, China exported $2.08 billion and imported $82.3 million from Bangladesh, resulting in a positive trade balance of $2 billion. Bangladesh holds the position of being India's most significant trading partner within the subcontinent, while India ranks as the second largest export partner for Bangladesh, contributing to approximately 12% of the overall exports to the country. The overall trade volume for the period of 2021-2022 reached a value of US$18.2 billion. The trade volume between Bangladesh and the other three BRICS countries, namely Brazil, Russia, and South Africa, was comparatively modest. Specifically, the trade value amounted to $0.3 billion with Brazil, $0.2 billion with Russia, and $0.1 billion with South Africa.

Bangladesh is currently seeking to broaden its foreign relations, a pursuit that holds significant strategic possibilities. By becoming a member of the bloc, Bangladesh has the opportunity to leverage this platform to enhance collaboration in the areas of infrastructure and sustainable development. In 2015, NDB extended its membership to Bangladesh, thereby accepting it as a new member. It is anticipated that the New Development Bank (NDB) will extend a loan of $2 billion to Bangladesh to execute eight development projects. The Dhaka Water and Sewerage Authority has also received approval from the NDB for a $235 million loan to fund a water supply project. Additionally, a loan of $442 million has been granted to address the maintenance and replacement needs of leaky gas pipelines in Dhaka and Narayanganj.

Bangladesh stands to gain diplomatic advantages through its participation in the BRICS nations and its commitment to upholding the principles of multilateralism. It can engage in the BRICS dialogues and initiatives about a range of shared concerns, including but not limited to trade, investment, climate change, health, and security. Bangladesh has the potential to contribute its knowledge and proficiency across multiple domains, including poverty alleviation, disaster mitigation, climate resilience, and social advancement. The bloc can provide Bangladesh various initiatives and projects undertaken by BRICS, including the BRICS Contingent Reserve Arrangement (CRA) and the BRICS Business Council. The BRICS alliance has the potential to serve as a strategic entry point for Bangladesh into the markets of South Africa and Latin America through various means. Presently, bilateral trade between Bangladesh and South Africa, as well as Latin America, is significantly limited, constituting less than 1% of Bangladesh's overall trade volume. By becoming a member of BRICS, Bangladesh stands to gain advantages from the preferential trade agreements and tariff concessions that the bloc has established with these regions. In addition, the inclusion of Bangladesh in BRICS could potentially yield advantages in the event of a scarcity of US dollars to import coal and other energy resources to fulfill its energy requirements.

From a geopolitical perspective, this would enable Bangladesh to align itself with a consortium of influential emerging economies, potentially bolstering its capacity to negotiate in regional and global forums. Bangladesh actively fosters regional and global cooperation and stability from a regional standpoint. For example, Bangladesh has already become a part of the Belt and Road Initiative (BRI), initiated by China, to bolster connectivity and foster economic collaboration between the continents of Asia and Europe. Bangladesh actively participates in various regional organizations, including SAARC and BIMSTEC to foster regional integration, facilitate trade, and foster economic development. Bangladesh joining the bloc would enhance the connectivity of BRICS countries with other nations within the region as well as globally. The potential inclusion of Bangladesh in BRICS could act as a tactical counterbalance to the influence other regional powers have over the South Asian region. The BRICS alliance has the potential to act as a strategic platform for Bangladesh to counteract the influence that countries like India and China exert due to their combined influence and economic strength. This would result in a broader array of partnerships and relationships, fostering greater diversity in Bangladesh's international engagements.

However, the inclusion of Bangladesh in the BRICS could potentially present certain challenges. Firstly, Bangladesh would need to establish an equilibrium in its diplomatic interactions with the BRICS nations and other key stakeholders, including the United States, the European Union, and Japan. Additionally, Bangladesh would need to address economic and political competition and rivalry within the BRICS countries, particularly between India and China and maintain its neutrality which is enshrined in its constitution. Finally, Bangladesh may need to evaluate potential repercussions from Western nations, particularly the United States, which may interpret Bangladesh's decision to join BRICS as indicative shift from the Western bloc in its politics.

In conclusion, it can be noted that Bangladesh is actively pursuing its economic interests to foster constructive alliances with diverse nations, which encompasses its participation in the BRICS bloc. In addition, Bangladesh is prioritizing diplomatic endeavors to effectively address concerns and uphold open lines of communication, thereby effectively managing and mitigating potential conflicts of interest within the bloc.

India
Source: www.thehindu.com

Algeria has applied to join the BRICS group and submitted a request to become a shareholder member of BRICS Bank with an amount of $1.5 billion, Ennahar TV quoted Algerian President Abdelmadjid Tebboune as saying.

It added that Mr. Tebboune said at the end of his visit to China that Algeria had sought to join the BRICS to open new economic opportunities.

The North African country is rich in oil and gas resources and seeking to diversify its economy and strengthen its partnership with countries such as China.

The BRICS group of nations comprises Brazil, Russia, India, China, and South Africa. It accounts for more than 40% of the world's population and about 26% of the global economy.

"We officially applied to join the BRICS group, we sent a letter asking to be shareholder members in the bank ... Algeria's first contribution in the bank will be $1.5 billion," Ennahar quoted Mr. Tebboune as saying.

More than 40 countries have expressed interest in joining the BRICS group of nations, South Africa's top diplomat in charge of relations with the bloc said this week.

Argentina, Iran, Saudi Arabia, the United Arab Emirates, Cuba, Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan are among countries that expressed interest.

China will invest $36 billion in Algeria across sectors including manufacturing, new technology, the knowledge economy, transport, and agriculture, local media quoted Mr. Tebboune as saying this week.

China
Source: www.globaltimes.cn


As South Africa will host the 15th BRICS Summit in its financial hub Johannesburg from August 22 to 24, the five BRICS countries - Brazil, Russia, India, China and South Africa - will discuss establishing sustainable payment mechanisms for mutual trade, among the key issues to be discussed at the summit.

The move comes as more and more developing countries are seeking alternatives to reduce their dependence on the US dollar. Experts said that the dollar, used as a tool for the US to exercise international hegemony, has resulted in great uncertainty for the recovery of the world economy.

"Given the current international situation, this issue will be addressed during the upcoming meeting of the bloc's leaders," the Russian ministry said, RT reported on July 21.

The BRICS countries, including Russia, have been seeking to shift further from the dollar in mutual trade, with the de-dollarization trend gaining momentum following Western sanctions that cut Russia off from Western financial mechanisms.

South Africa's Minister of International Relations and Cooperation Naledi Pandor said after the BRICS foreign ministers' meeting on June 1 that the New Development Bank (NDB) is studying the potential use of alternative currencies to the dollar "to ensure that we do not become victim to sanctions," Reuters reported.

Brazil's President Luiz Inacio Lula da Silva in April called on BRICS countries to come up with an alternative to the dollar in foreign trade, Bloomberg reported.

By establishing a new settlement mechanism, the BRICS countries can reduce their dependence on the US dollar and increase their initiative and flexibility in foreign trade, Hong Yong, an expert at the digital real economies integration Forum 50, told the Global Times on Sunday.

One way is to use their national currencies as a means of settlement in mutual trade, Hong said as such an alternative payment system can reduce transaction costs and further facilitate trade and investment among BRICS countries.

Experts said that BRICS countries need to further strengthen their monetary policy coordination, establish a stable financial supervision mechanism, and strengthen financial cooperation and technical support.

In addition, the BRICS countries need to create more open, transparent and reliable financial markets and attract more countries to join and adopt the BRICS payment system.

In recent years, the influence and attractiveness of the BRICS mechanism has been on the rise and it has increasingly become an important platform for cooperation among developing economies, experts said.

According to data provided by Acorn Macro Consulting, a UK-based macroeconomic research firm, the BRICS bloc accounts for 31.5 percent of global GDP, surpassing the G7, which currently accounts for just 30.7 percent.

More than 40 countries have indicated an interest in joining the BRICS bloc, according to South Africa's ambassador to the bloc, Anil Sooklal.

In the latest development, Algeria has applied to join the BRICS group and submitted a request to become a shareholder member of the NDB with an amount of $1.5 billion, Reuters reported on Saturday.

Russia
Source: brics-plus-analytics.org

Introduction to a forthcoming Special Issue in the BRICS Journal of Economics 5(2) (2024)

Since 2022 the theme of the creation of a common BRICS currency has become one of the most important BRICS-related topics in the global agenda. Many observers are starting to claim that the creation of such a currency could have transformational implications for the global monetary system – at the very least, the scope for de-dollarization that may be facilitated by the creation of a BRICS common currency may be substantial. The beneficiaries of this de-dollarization could include the currencies of the largest developing and developed economies.

In the process of launching the new BRICS currency there may be an important role to be played by the BRICS New Development Bank as well as the regional development banks, in which BRICS are members. This circle of financial institutions could pursue a de-dollarization strategy in the coming years that would improve the conditions for the launching of a common currency. Another important supporting factor could be the increase in mutual trade and investment among BRICS economies – something that is starting to be observed in the past several years. Greater trade liberalization and the pursuit of the path of the "integration of integrations" among the regional integration blocks of BRICS economies could provide an important boost to mutual trade in national currencies across the Global South.

One of the key questions at this juncture concerns the modality of the launching of the common currency. Among the possibilities is an accounting unit, a reserve currency as well as the various forms of a physical fiat transactions unit. Many market operators argue in favor of making the currency digital and backed up by gold and/or other resource assets. Whatever the eventual choice regarding the modalities of the BRICS currency, the implications for the international monetary system and global financial markets could be significant.

As for the impact of the introduction of the BRICS currency on international financial markets, there may be palpable effects on the FX market, including the dollar and the yuan exchange rates. Greater pricing in BRICS national currencies of foreign trade transactions as well as a greater use of the yuan in Central Bank reserve accumulation could also become more pronounced. All of these trends could shape the vectors of transformation of the international monetary system in case the common currency project does materialize. The latter depends on the political support for such a project from all the BRICS stakeholders – exploring the pros and cons of the project from the point of view of each of the BRICS economies may also constitute an important research undertaking in the coming years.

Yaroslav D. Lissovolik, Founder of "BRICS+ analytics", member of the Russian International Affairs Council (RIAC)



Time frame for the Issue:

• Launch for the Call for Papers: July 17st, 2023

• Deadline for submitting a paper: December 31st, 2023

The papers should be between 6,000 and 8,000 words

For more information: https://brics-econ.arphahub.com/issue/4634/