The expansion of the BRICS+ partnership and the increasing utilization of local currencies in trade settlements will contribute to the acceleration of de-dollarization, according to Sun Qi, the executive director of the Center for Russia and Central Asia Studies at the Shanghai Academy of Social Sciences. Sun Qi expressed this viewpoint in an interview with TASS.
As more countries join the ranks of BRICS+ partners, the shift towards conducting trade settlements in local or third-party currencies will gain momentum, leading to a faster process of reducing reliance on the US dollar, the expert explained.
Regarding the upcoming BRICS summit in South Africa, Sun Qi anticipates that discussions will revolve around several significant topics. One prominent subject is the potential creation of a unified BRICS currency, such as "BRICS Pay," to facilitate transactions between BRICS member countries.
Additionally, the issue of expanding the BRICS association is expected to be a central focus. Sun Qi emphasized the attractiveness of the BRICS cooperation mechanism, which is rooted in a shared desire for development. Despite external challenges like the COVID-19 pandemic and geopolitical conflicts, many developing countries prioritize their development needs, making the BRICS cooperation mechanism appealing to them.
China initiated the process of expanding the BRICS group in May 2022. Applications from potential new members, including Argentina and Iran, were received after the summit in Beijing. The BRICS foreign ministers discussed the expansion concept in Cape Town in June 2023, and the topic will continue to be addressed at the upcoming summit in Johannesburg from August 22 to 24, chaired by South Africa. Naledi Pandor, South Africa's Minister of Foreign Affairs and Cooperation, stated that formal applications from 23 countries seeking BRICS membership have been submitted.
GSV "Russia - Islamic World"
Photo: brics-russia2020.ru/Creative Commons 4.0
Based on materials from TASS