Chance of a new BRICS currency?

[Billythebuilder]

Trump possibly considering direct U.S military action against Iran even though like in the Iraq war - no "Weapons of mass destruction" found.
Russia and China getting involved verbally.

Tariffs are considered by some as an act of war.
Sanctions against Russia. NATO vs Russia.
China's belt and road initiative.

Could a new BRICS currency become more of a possibility if foreign relations get worse with these countries?

Could a BRICS currency work in reality?

 

[Dr Strangelove]

Could a new BRICS currency become more of a possibility if foreign relations get worse with these countries?

No.

 

[TomEdison]

Could a BRICS currency work in reality?

Hard to see how.

 

[Purple]

Could a new BRICS currency become more of a possibility if foreign relations get worse with these countries?

Yes, in the same way that buying a second Euro-millions ticket increases your chances of winning but in reality; no.

Could a BRICS currency work in reality?

No

 

[joe sod]

I see Brics conference on in Brazil this week but without China or Russia, doesn't appear to be much coherence or togetherness with the Brics, at the end of the day they put their own interests first. With Russia prosecuting a murderous imperialistic war and China prosecuting its own imperialistic interests I cannot see much trust or cooperation between the Brics, its all just window dressing.

 

[jpd]

All countries put their own interests first, not just Brics

 

[skrooge]

Whatever about the politics of it - limited - the economics of it would need to also stack up.

For the currency to be anyway credible the BRICS countries would need to show commitment to convergence towards a common set of economic standards. Look at Europe, to join the euro you need(ed) low inflation, lowish/falling Government debt etc.

In the case of Europe, geography and trade connections were pretty well developed - there was an economic benefit (improved trade) associated with giving up some level of national symbolism/autonomy. I'm not sure such a strong rationale can be made for the BRICS.

Even if they did manage to overcome the issues what would it bring to the global table that the world didn't already have with existing currencies on offer? Okay you might be uneasy about the US Dollar but there's always the euro, Sterling, Swiss franc etc. None of these are perfect but look at the credit ratings for some of the BRICS countries and those imperfections would look small.

Or put another way, given the size disparity between BRICS members, what would this currency offer above and beyond the yuan right now.

Infographic: BRICS Plus: Equal Partnership of Unequals?

This chart compares the GDP of current and future BRICS countries in 2022.

www.statista.com