Brazilian President Luiz Inacio Lula da Silva made the call on Wednesday, August 24, 2023, at the BRICS Business Forum in Johannesburg. He said that a common currency would help to reduce the volatility of the dollar, which could make it easier for BRICS countries to trade with each other and attract investment.
The BRICS countries are Brazil, Russia, India, China, and South Africa. They are all major emerging economies, and they have been working together to increase cooperation in trade, investment, and finance.
The idea of a BRICS common currency has been discussed for several years, but there has been no concrete progress. Some experts have argued that it would be difficult to create and manage a common currency for such a diverse group of countries. Others have argued that it would be unnecessary, as the BRICS countries already have a number of other mechanisms in place to promote trade and investment.
It remains to be seen whether Brazil’s proposal will gain traction among the other BRICS countries. However, it is a sign of the growing economic and political importance of the BRICS bloc.
Here are some of the pros and cons of creating a BRICS common currency:
Pros:
- It could reduce the volatility of the dollar, which could make it easier for BRICS countries to trade with each other and attract investment.
- It could promote economic integration and cooperation between the BRICS countries.
- It could give the BRICS countries more bargaining power in the global economy.
Cons:
- It would be difficult to create and manage a common currency for such a diverse group of countries.
- It could lead to inflation and other economic problems.
- It could create a trade deficit for some BRICS countries.
Ultimately, the decision of whether or not to create a BRICS common currency is up to the BRICS countries themselves. There are both pros and cons to consider, and the decision will likely be based on a variety of factors, including the economic situation of each country and the political will to make it happen.
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BRICS Want to Extend the Participants Countries
The BRICS countries have invited Argentina, Egypt, Indonesia, Iran, Kazakhstan, and the United Arab Emirates to join the bloc as new members. The invitation was made at the 14th BRICS summit in Brazil on Thursday, August 24, 2023.
The BRICS countries are Brazil, Russia, India, China, and South Africa. They are all major emerging economies, and they have been working together to increase cooperation in trade, investment, and finance.
The invitation to the six new countries is a sign of the bloc’s willingness to expand and to play a more influential role in the global economy. The new members would bring a diverse range of strengths and perspectives to the bloc, and they would help to strengthen its economic and political clout.
The six new countries are all important players in their respective regions. Argentina is a major economy in Latin America, Egypt is a major economy in Africa, Indonesia is the largest economy in Southeast Asia, Iran is a major oil producer, Kazakhstan is a major transit country, and the United Arab Emirates is a major financial center.
The decision to invite the six new countries was made by consensus among the BRICS countries. The invitation is subject to approval by the national governments of the six new countries.
The expansion of the BRICS bloc is a significant development. It would create a larger and more powerful bloc that could play a more influential role in the global economy. The bloc would also be more representative of the global economy, as it would include countries from all regions.
The expansion of the BRICS bloc is likely to be met with mixed reactions. Some countries may see it as a threat to their own interests, while others may see it as an opportunity to cooperate with other emerging economies. The bloc’s future direction will depend on how it is able to manage these challenges and opportunities.
