Business & Economy

BRICS Advocates for Local Currency Trade to Counter US Dollar Dominance

With the induction of five new members, the share of BRICS states in global GDP has risen to 35 percent in 2023, Russian Central Bank has said. The economic heft of BRICS has surpassed that of G7.
Sputnik
The BRICS grouping is encouraging the use of local currencies in trade settlements among the member states to redress an "unfair and costly international payment system" which is based on the US dollar, South Africa's Minister of International Relations and Cooperation Naledi Pandor told a media briefing in Pretoria on Wednesday.
Pandor highlighted that the BRICS states also agreed to develop alternative "international platforms" at the Johannesburg Summit held under the South African presidency last August.
The top South African diplomat described the push towards the use of national currencies as one of the most "prominent outcomes" of the Johannesburg Summit.

Pandor also announced that the five countries – UAE, Egypt, Ethiopia, Iran and Saudi Arabia – have officially joined BRICS as full-fledged members under the ongoing Russian presidency of the grouping.

A total of six nations, including Argentina, were invited to join the Global South grouping at the South Africa summit. However, Argentina's recently-elected President Javier Milei has since said that Buenos Aires won't be proceeding with its application to join the grouping.
The remarks come against the backdrop of Russia hosting a meeting of sherpas and sous-sherpas of the BRICS countries in Moscow this week.

New Members to Strengthen BRICS: Lavrov

Addressing the BRICS meeting on Wednesday, Russian foreign minister Sergey Lavrov noted that a large number of countries were looking to join the grouping.
"Accession of new members to BRICS strengthens strategic partnership and the global posture of our group," Lavrov stated.
The top Russian diplomat asserted that BRICS has become "powerful enough to shape the global agenda, by consistently defending interests of the global majority".
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