The BRICS nations — Brazil, Russia, India, China, and South Africa — are gearing up to discuss the creation of a joint currency at their upcoming summit in Johannesburg, South Africa.
Why it matters: A common BRICS currency could further de-dollarization efforts, reducing dependence on the U.S. dollar.
- The proposal has its critics, but its proponents believe it could help these nations dodge the “dollar hegemony” and bolster their own economic positions.
Next up: The BRICS leaders’ summit on Aug. 22 is the next big event where this could be discussed.
- Nineteen other countries, including Saudi Arabia and Iran, have shown interest in joining the BRICS bloc, which could broaden the impact of any decision.
A common BRICS currency could sidestep current barriers to escaping dollar dominance.