A single currency and common payment system to facilitate international trade dominated the discussions at the BRICS Business Forum on the first day of the 15th BRICS Summit in Johannesburg on Tuesday.
The BRICS leaders attended the forum’s plenary yesterday and listened to feedback on the BRICS Business Forum deliberations regarding cooperation by business communities of the five BRICS countries, presented by Standard Bank group chief executive Sim Tshabalala.
Following that, each of the leaders present addressed the BRICS Business Forum, where business from the five countries deliberated a number of issues including trade, a single currency and cooperation.
President of South Africa Cyril Ramaphosa noted that the BRICS countries account for a quarter of the global economy and 40% of the world population, and announced a discussion of leaders on expanding the association.
He advocated a fundamental reform of global financial institutions, criticized “waves of protectionism and unilateral measures that undermine international trade”, and called for free and inclusive economic growth.
Brazil’s President Lula da Silva defended the idea, saying that the currency would not be aimed at “rejecting” the U.S. dollar, but would instead be used to facilitate trade between the emerging nations.
“We want BRICS to be a multilateral institution, not an exclusive club,” Lula said, adding that the bloc should not be seen as a challenger to the existing power structure.
“We do not want to be a counterpoint to the G7, G20 or the United States,” Lula said. “We just want to organize ourselves.”
In April, Lula said during a speech that he wants to see the establishment of a BRICS currency. “I am in favor of creating, within the BRICS, a trading currency between our countries, just like the Europeans created the euro,” Lula said.
Sergey Lavrov, Russia’s Foreign Minister, has been very emphatic in his comments about the need for a common currency.
“Serious, self-respecting countries are well aware of what is at stake, see the incompetence of the ‘masters’ of the current international monetary and financial system, and want to create their own mechanisms to ensure sustainable development, which will be protected from outside dictates,” Lavrov told reporters following a meeting with Angolan President Joao Lourenco on Jan. 25.
“It is in this direction that the initiatives that have been voiced recently … about the need to think about creating our own currencies within the framework of BRICS.”
