Summary:
Sergey Stepashin believes discussing a common BRICS currency is premature.
Emphasizes the need to use national currencies for payments instead.
Highlights challenges in establishing a shared currency, especially between India and China.
Calls for strengthening financial cooperation through Eurasian Bank and BRICS Bank.
Iran supports the idea of a single BRICS currency, contrasting with Stepashin's caution.
Sergey Stepashin, former Prime Minister of Russia, has stated that the idea of a common BRICS currency is currently premature. He emphasizes the importance of enhancing payments in national currencies rather than rushing into a unified currency. Stepashin pointed out the significant challenges that a shared currency would face, especially between major economies like India and China. He remarked, “It is difficult to imagine that India and China have a common currency. These are too large countries, large economies.”
Stepashin's Perspective on BRICS Currency
Stepashin believes that the first step should prioritize the use of national currencies for transactions. He suggests that establishing a smooth operation of the Eurasian Bank and the BRICS Bank is essential before even considering a unified currency. Currently, the BRICS economic bloc consists of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).
Diverging Opinions Within BRICS
While Stepashin advocates for caution, there are BRICS members like Iran, who are pushing for the development of a single BRICS currency. Recent reports indicate that Iran has supported Russia’s initiative for a common currency, while China and Russia have been promoting the increased use of their local currencies in trade. Discussions between Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin have focused on strengthening financial cooperation within the bloc.
What are your thoughts? Should BRICS nations focus on enhancing their financial ties through national currencies first, or is a unified currency the way forward? Let us know in the comments!
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