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What has driven the BRICS nations to push for their own currency and embark on this journey to depose the dollar from its pedestal? What are the chances that BRICS will be able to de-dollarise the global financial system?
JOHANNESBURG : Brazil's President called on Wednesday for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange rate fluctuations.Luiz Inacio Lula da Silva made the proposal at a BRICS summit in Johannesburg
The greenback's share of official FX reserves fell to a 20-year low of 58% in the final quarter of 2022, and 47% when adjusted for exchange rate changes, according to International Monetary Fund data.
Brazil's President called on Wednesday for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange rate fluctuations. Luiz Inacio Lula da Silva made the proposal at a BRICS summit in Johannesburg. Officials and economists have pointed out the difficulties involved in such a project, given the economic, political and geographic disparities between Brazil, Russia, India, China and South Africa.
Brazil's President, Luiz Inacio Lula da Silva, has proposed the creation of a common currency for BRICS nations to reduce vulnerability to fluctuations in the dollar exchange rate. However, officials and economists have highlighted the challenges involved in such a project, given the economic, political, and geographic differences among Brazil, Russia, India, China, and South Africa.