The emerging discourse about the creation of a new currency within the BRICS association (Brazil, Russia, India, China, and South Africa) is garnering substantial momentum. The association recently acknowledged the currency’s development, with future announcements anticipated at the forthcoming 2024 summit. As BRICS continues to vie with Western powers, the association has been implementing policies to reduce dependence on the US dollar. There are speculative talks about whether the apex of this movement may be unveiled during the October summit: a genuine challenger to the US dollar.
In May 2024, both Russia and Iran affirmed their involvement in the BRICS currency project. Initial buzz about this new currency surfaced ahead of the 2023 Annual Summit. The advent of such a currency could bring about transformative changes in international finance. Moreover, the US has been cognizant of these recent developments within BRICS and expressed concerns about the future of its national currency—the US dollar. The US dollar has enjoyed the position of the lead international reserve currency for decades, but the impending launch of BRICS currency, which enjoys considerable backing, might emerge as a formidable rival over time.
There are circulating speculations about the possible launch of the BRICS Currency during the October 2024 summit. However, updates anticipated from the summit indicate the currency development might take longer than expected. As per a BRICS representative from India, they aim to have the BRICS currency operational within the following 3-4 years, i.e., by 2027.
Last week, the director of the BRICS Institute in New Delhi, Binod Singh Ajatshatru, disclosed this development. He considered the forecasted October 2024 launch unconventional as the US dollar is currently the predominant worldwide currency. To subdue the dollar, powerful economic growth is vital, stated Ajatshatru. He hypothesized — if Russia, India, and China continued their rapid growth, by 2027, they could potentially introduce a common currency.
Simultaneously, the BRICS Pay system’s establishment further heightened interest in the bloc’s currency release timeline. Although 2027 is an approximation by the Indian representative, many anticipate more comprehensive updates about the currency during the upcoming summit this fall.
Another significant agenda proposed for discussion during the October summit is the potential further expansion of the association. Multiple countries have expressed interest in joining BRICS and could be invited to the upcoming autumn summit. Moreover, with the association progressing towards complete de-dollarization, updates on the BRICS currency could be a considerable testament to the growth of the alliance.
