The BRICS group of nations may provide an alternative currency if the dollar and the international monetary system collapse, according to Alexey Mozhin, Russia’s executive director at the International Monetary Fund. In an interview with RIA Novosti, Mozhin highlighted growing recognition of the current financial system’s flaws, Big News Network reports.
Mozhin suggested that the BRICS could develop a currency based on a basket of its member countries’ currencies, including the Chinese yuan, Indian rupee, Russian ruble, Brazilian real, and South African rand. He noted that this proposal is under discussion.
Earlier this year, BRICS finance ministers and central bank heads voiced support for reducing reliance on the dollar and promoting trade in national currencies. Russia’s Deputy Minister of Finance, Ivan Chebeskov, stated that most BRICS countries favoured payments in national currencies . He mentioned that BRICS members, now totalling ten countries, shared experiences in developing central bank digital currencies and participating in various platform pilots.
Chebeskov concluded that the majority at the BRICS forum in February endorsed increasing bilateral trade and economic ties through independent settlement mechanisms in national currencies.
Meanwhile, a Bloomberg report indicated that economic aides to former US President Donald Trump, who is running for re-election, are exploring punitive measures against countries shifting away from the US dollar. These measures could include export controls, changes to currency manipulation policies, and tariffs.
The move towards de-dollarisation has accelerated since Russia was cut off from the Western financial system following the Ukraine conflict in 2022. Financial experts warn that the seizure and potential confiscation of Russia’s foreign assets by Western countries could further drive this trend.
Read more: Trump wants to punish countries that ditch the US dollar
