A shared currency may provide a way out of sanctions, says Minister Pandor.
South African Minister of International Relations and Cooperation, Naledi Pandor, has suggested that a shared currency among BRICS countries could help shield them from the impact of sanctions imposed by major powers.
- Pandor made the comments during a virtual meeting of the BRICS Business Council, which brings together business leaders from Brazil, Russia, India, China, and South Africa.
- She argued that a BRICS currency would reduce the dependence of member countries on the US dollar and other major reserve currencies, which are often used as tools of economic coercion by Western powers.
- Pandor also noted that a shared currency could help boost trade and investment among BRICS countries and create new opportunities for economic growth.
- The idea of a BRICS currency has been discussed for several years, but has yet to be implemented. Some experts have raised concerns about the practical challenges of creating and managing a new currency, as well as the potential political and economic risks involved.
- However, others have argued that a shared currency could help promote greater economic integration and cooperation among BRICS countries, which together account for over 40% of the world’s population and a significant share of global economic output.
- The issue of economic sanctions has become increasingly important for BRICS countries in recent years, as they have faced growing pressure from Western powers over issues such as human rights, trade, and security. A shared currency could offer a way for these countries to reduce their vulnerability to external pressures and assert their economic independence.