BRICS Expansion Will Speed Up De-Dollarization, Chinese Expert Says

As extra nations be part of the BRICS financial bloc, there will likely be a big improve in settlements utilizing nationwide currencies, resulting in an acceleration within the de-dollarization course of, a Chinese professional says. “For most developing countries, development is a top priority. That is why the BRICS cooperation mechanism is attractive to these countries,” he added.

BRICS and De-Dollarization

Sun Qi, govt director of the Center for Russian and Central Asian Studies on the Shanghai Academy of Social Sciences, advised Russian information outlet Tass Friday that extra nations becoming a member of the BRICS financial bloc will improve using nationwide currencies in settlements considerably, which can assist speed up de-dollarization. The BRICS nations comprise Brazil, Russia, India, China, and South Africa. He was quoted as saying:

As increasingly nations be part of the ranks of BRICS + companions, the transition to settlements in native foreign money or third-party currencies in mutual commerce will improve considerably, thereby accelerating de-dollarization.

Speaking concerning the upcoming BRICS summit that can happen on Aug. 22-24 in Johannesburg, Qi believes that one of many matters to be mentioned is the creation of a single BRICS foreign money, stating: “BRICS currency, used for transactions between the BRICS countries, can be discussed in full and in detail.”

While some imagine that the subject of a standard BRICS foreign money will likely be mentioned on the summit, together with Russian Deputy Prime Minister Alexei Overchuk, South Africa’s high diplomat in control of BRICS relations lately mentioned that this subject is not on the agenda to be mentioned on the summit. South Africa is the host of the BRICS summit this yr.

Another subject that will likely be closely mentioned on the upcoming summit is the growth of the financial bloc. Noting that lately, the BRICS growth has been hindered by “the coronavirus pandemic, the Russian-Ukrainian conflict, and other factors,” Qi harassed:

For most growing nations, growth is a high precedence. That is why the BRICS cooperation mechanism is engaging to those nations.

According to South African officers, over 40 countries have expressed curiosity in becoming a member of the financial bloc, together with 23 countries which have already utilized.

Do you agree that extra nations becoming a member of the BRICS financial bloc will speed up de-dollarization? Let us know within the feedback part under.