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Business News/ News / World/  BRICS alliance working to create its own currency, says Russian official
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BRICS alliance working to create its own currency, says Russian official

The bloc grouping the emerging economic heavyweights Brazil, Russia, India, China and South Africa are reportedly working on their own currency - established on a strategy that ‘does not defend the dollar or euro’.

(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping leave after a group picture during BRICS (Brazil, Russia, India, China and South Africa) Summit in Benaulim, in the western state of Goa, India, October 16, 2016. REUTERS/Danish Siddiqui TPX IMAGES OF THE DAY - S1BEUHGQRWAAPremium
(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping leave after a group picture during BRICS (Brazil, Russia, India, China and South Africa) Summit in Benaulim, in the western state of Goa, India, October 16, 2016. REUTERS/Danish Siddiqui TPX IMAGES OF THE DAY - S1BEUHGQRWAA

Moscow has found itself reeling under an avalanche of sanctions and restrictions as the Ukraine Russia war rages. Against this backdrop, President Vladimir Putin adopted a new foreign policy this week, identifying China and India as its main allies on the world stage. Now, the ties between the three nations (and a few others) appear poised to go a step further with the formation of a new currency. 

According to reports quoting Russian lawmaker Alexander Babakov, the BRICS nations are in the process of creating a new medium for payments - established on a strategy that "does not defend the dollar or euro". He reportedly indicated that the new currency would be secured by gold and other commodities such as rare-earth elements.

While the claim is yet to be verified by other officials from the member nations, it came mere days before South Africa sent senior officials to Russia to discuss "recalibration of the global order" with President Vladimir Putin's party. The country is also slated to host a BRICS summit in August this year.

ALSO READ: Russia adopts new foreign policy amid war, cites India, China as main allies

Earlier on Friday, President Putin adopted a new foreign policy that put India and China at the forefront. The announcement also came mere days after Chinese premier Xi Jinping visited Moscow to further cement the "no limits" partnership announced last year.

"Russia will continue to build up a particularly privileged strategic partnership with the Republic of India with a view to enhance and expand cooperation in all areas on a mutually beneficial basis and place special emphasis on increasing the volume of bilateral trade, strengthening investment and technological ties, and ensuring their resistance to destructive actions of unfriendly states and their alliances," the statement said.

It also announced its intention to prioritise and enhance its capacity and international role in groupings such as BRICS ‘to help adapt the world order to the realities of a multipolar world’.

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Published: 02 Apr 2023, 10:25 PM IST
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