The New Development Bank, created by the BRICS bloc, currently has no immediate plans to create a common currency among its member countries (Brazil, Russia, India, China, and South Africa).
- BRICS aims to conduct more trade in local currencies but is not ready to challenge the dominance of the US dollar globally.
- The New Development Bank, based in Shanghai, seeks to expand its lending capability and include new emerging market member countries.
- The bank intends to direct 40% of its lending toward climate-related projects.
- Finance Minister Enoch Godongwana stated that there have been no direct discussions on a new currency but emphasized cooperation with BRICS countries to facilitate non-dollar trades.
- The idea of creating a new currency is driven by the desire to reduce dependence on the US dollar and mitigate the impact of sanctions.
- The BRICS Payments Task Force is exploring various areas of cooperation, including cross-border payments, ISO 20022 message formats, information sharing on CBDCs, and bilateral interlinking payment infrastructures.
- Discussions between the South African Reserve Bank and foreign central banks, such as Russia and India, have taken place regarding interlinking payment infrastructure and settlement systems.
- The South African Reserve Bank is prioritizing domestic and regional payments initiatives before pursuing interlinking discussions with Russia and India.