BRICS nations discussing introduction of single currency to ease trade, says Russian envoy

amalgam of five major emerging economies- Brazil, Russia, India, China and South Africa (BRICS) is conferring upon prospect of creating a single currency. revelation was me on Thursday by Pavel Knyazev, Ambassor-at-Large of Russian Foreign Ministry, Sous-Sherpa of Russia in BRICS, reported Sputnik.  

" possibility and prospects of a common single currency, BRICS-based accounting currency, is being discussed," Knyazev stated during an expert discussion on prospects for expansion of BRICS and Shanghai Cooperation Organization (SCO). discussion was hosted by Valdai Club, a Moscow-based think tank and discussion forum that is closely associated with President Vlimir Putin.  

Previously, Tehran h proposed creating a new single currency to facilitate tre between members of Shanghai Cooperation Organization.  

Iran’s proposals for SCO  

Iran's Foreign Minister for Economic Diplomacy, Mehdi Safari h earlier announced request in July, proposing that group’s nine-member nations introduce a new common currency to facilitate tre.  

roots of Iran’s proposal le back to September 2021. Reportedly, proposal aimed to grually transition to mutual settlements through national currencies in order to develop SCO members’ financial cooperation and act as a bulwark against US sanctions, a Sputnik report states.  

Relevance of ‘single currency’ proposals  

“By extending local currency settlements, SCO countries would lower risk of being punished by US via financial means, such as freezing US dollar assets involved in SCO countries' tre," director of Finance and Securities Institute of Wuhan University, Dong Dengxin h stated, reported Sputnik.  

Toger, nine member countries of SCO include approximately 60% of area of Eurasia and 40% of world’s population. Having a single currency to conduct business between member nations would greatly ease tre.  

Moreover, or members of SCO are also targets of economic sanctions by United States, states Sputnik. Russia, being in limelight after Putin’s announcement to launch a special military operation in Ukraine on 24 February, has continuously faced economic sanctions from US and EU nations. Meanwhile, Moscow looked towards its Asian partners, especially China and India, who eagerly bought Russian gas and coal exports in spite of threats of being sanctioned by US.  

Formed in 2006 to enhance cooperation between member nations, BRICS is an informal association of world's major developing economies. Anor purpose of association is to elaborate common approaches to global economic challenges.  

BRICS member nations represent around 40% of global population and around a quarter of global GDP.