BRICS currency uneasy to create, alternative solutions exist, says Russian MFA
MOSCOW, February 28. /TASS/. The process of creating a common currency of BRICS countries (Brazil, Russia, India, China, South Africa) is connected with a range of difficulties, though there are alternative solutions as well, Russian Deputy Foreign Minister Alexander Pankin said in an interview with TASS.
Brazilian President Luiz Inacio Lula da Silva has recently mentioned the initiative of creating common currencies within the framework of the organization to be used in mutual settlements, Pankin noted. Previously, Russian President Vladimir Putin suggested at the BRICS summit last June that the possibility of creating an international reserve currency on the basis of the basket of BRICS nations’ currencies be considered, he added. "And I should say that the share of non-dollar transactions between BRICS countries is on the rise. In this context it is not surprising that the ideas of creating a common currency of the organization are being voiced. That said, it should be admitted that there are certain difficulties on this issue as well," deputy minister said.
There are also alternative solutions, the diplomat noted. "It would be more pragmatic to regard a hypothetic BRICS currency not as the currency to replace national ones, but as a new promising multi-sided tool based on the basket of member states’ currencies," Pankin noted. "One of models offered earlier suggests the functioning of the BRICS currency as a reserve one similar to special drawing rights issued by the IMF," he said, adding that this option also requires a thorough analysis through Russia’s relevant state bodies and their BRICS partners.
BRICS is not an integration, which means it is not aimed at the formation of a common economic space with unified regulation in the financial-economic, migration and other areas, the diplomat stressed. "BRICS is a comprehensive strategic partnership, a demanded platform for bringing positions on a wide range of transnational dialogue closer," he said.
