The foreign minister of South Africa has said that the BRICS countries would investigate whether or not adopting a new global currency will enable them to break their reliance on the US dollar.
Bloomberg says that Brazil, Russia, India, China, and South Africa are getting ready to “discuss the feasibility” of creating a new single currency.
Naledi Pandor, South Africa’s Minister of International Relations and Cooperation, has said that BRICS members and other nations interested in joining the organization are questioning the need of depending on the US currency to deal with one another.
They’re asking why it is that we can’t use our own currency in commerce. If the dollar is so bad, why are we so set on using it?
The rand is South Africa’s legal tender and is traded across the world. But you know we have a lot of dollar debt, so we have to consider this seriously.
Minister Pandor said the benefits and drawbacks of switching to a new currency should be properly considered and discussed.
“I prefer not to speak before the BRICS presidents’ meetings. Because economics is so complex and because you must take into account the circumstances of every country involved, particularly when coming from a period of low development, I do not believe that we can always proceed on the assumption that the plan would be successful.”
It’s possible that South Africa’s approach to a new currency will be more cautious than Russia’s. According to reports, BRICS has received interest from over a dozen countries.
Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, and two unknown East African and one unnamed West African country are also on the list.
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