In an interview with CGTN, a Chinese media platform, Vladimir Ilyichev, the Deputy Minister of Economic Development, conveyed his pessimism about the near-term advancement of such a currency, despite the significance and scale of the BRICS organization. He stated:

“The BRICS collective economy represents approximately 25% of the global Gross Domestic Product. In our estimation, it necessitates an autonomous payment mechanism. Conversations about a BRICS currency remain pertinent. Nevertheless, the creation of novel currencies and payment tools is never an expeditious undertaking.”

Ilyichev elucidated that these processes consume time, underscoring that the European Union deliberated the notion of the Euro for numerous years prior to its issuance.

While the leaders of the bloc have pursued a trajectory of minimizing dependence on the US dollar and adopting national currencies for bilateral settlements, Brazilian President Luiz Inacio Lula da Silva advocated for a shared currency during the ongoing BRICS summit. He contended that such a currency would amplify payment options and diminish vulnerabilities for the bloc’s constituent nations.

Alternative Approaches

Although Ilyichev acknowledged the unlikelihood of swiftly achieving this objective, he also highlighted the feasibility of alternative solutions. He elaborated that the adoption of a currency basket, or even utilizing an existing fiat currency from one of the BRICS countries, could be considered. Additionally, he underscored the necessity for a payment system employing the selected currencies to facilitate cross-border transactions among the member countries.

Ilyichev noted that, given the current geopolitical landscape, payment systems are influenced by political dynamics, with Western nations wielding their impact in alignment with their objectives and aims. This matter raises concern not only for BRICS nations but also for other states, encompassing Arab and Southeast Asian countries, as emphasized by Ilyichev.