... The desirability of using national currencies in trade and financial transactions, both within the BRICS and with trading partners in third countries was emphasised. There was also support for strengthening correspondent banking relations between the BRICS countries for settlements in national currencies. The finance ministers and heads of central banks of the BRICS countries were instructed to work on this issue for the next summit; that is, they will have to report on the results within the framework of the Russian Chairmanship and the BRICS ...
... quotations. As reported by the Bank for International Settlements, the daily turnover at FOREX exceeded USD 7.5 trillion in April 2022. The share of the U.S. dollar in the structure of foreign exchange trading amounted to 88%, whereas the combined share of BRICS-11 currencies was only 9%. Geographically, the UK and the U.S.
accounted for
57.6% of trading, while the BRICS-11 – for only 3.2%.
The international foreign exchange market is an oligopoly of U.S. banks, which
serviced
38.15% of total international foreign ...
... reserve currencies. Hence discussions revolving around a BRICS reserve currency as a currency basket that brings together the currencies of India, Russia, Brazil, China and South Africa.
The proposal to create a new reserve currency based on a basket of BRICS currencies
was first formulated
by the Valdai Club in 2018. The idea was to create an SDR-type currency basket composed of the BRICS’s five national currencies, potentially involving some of the other currencies in the BRICS+ circle economies. The ...
... circle economies. The choice of BRICS national currencies was due to the fact that these were the among the most liquid currencies across emerging markets. The name for the new reserve currency — R5 or R5+ — was based on the first letters of the BRICS currencies all of which begin with the letter R (real, ruble, rupee, renminbi, rand).
The recent debates concerning the prospects for the creation of a new reserve currency focused more on the risks, fragilities and outright impossibility of the R5 project....
... of the BRICS countries
, Karataev et al state:
"
Though the BRICS countries have established a Contingent Reserve Arrangement… the currency swap under this arrangement is one between US dollar and local currencies of BRICS, not one among the BRICS currencies. Currently, there are few local currency swap agreements in force (between Russia and China, China and South Africa)
” (Karataev et al., 2017 (p.110).
The key barriers hindering the CRA's success towards its stated goals, including the CRA's ...
... for fertilizers, Russia pays India in Resolve for tea, and India pays in Resolves to South Africa for distillation products.
The merits for accelerating and expanding the scope of NDB are not only inherent in the form of more elasticity for national currencies but also bringing Asia Pacific (China), Eurasia (Europe), India (Sub-Continent), Middle East or West Asia (Iran) Africa (South Africa) and South America (Brazil) together. An immediate intra-continental set of synergies will emerge through ...
