With the forthcoming BRICS summit in Johannesburg capturing global attention, Roman Babushkin, the Russian Deputy Chief of Mission in Delhi, has unveiled a visionary proposal that could reshape the dynamics of this influential bloc. Proposing a paradigm shift towards trading in national currencies within the BRICS group, Babushkin seeks to harness the evolving global landscape and enhance financial autonomy among member nations.
Addressing a recent BRICS meeting convened by the India Foundation in Delhi, the Russian diplomat highlighted the ongoing strides BRICS members have taken towards adopting settlements in their respective national currencies. He stressed that this evolution could not only align with the changing global order but also cultivate greater independence in financial transactions within the bloc.
Drawing inspiration from a prior suggestion put forth by Brazilian President Lula de Silva, Babushkin accentuated the idea of introducing a single currency for BRICS. This concept, while pertinent, he noted, is accompanied by intricate challenges that necessitate comprehensive exploration and analysis.
Acknowledging the complexities involved, he pointed to the necessity of establishing a regulatory authority and harmonizing macroeconomic and monetary policies across BRICS nations to facilitate the introduction of a unified currency.
He further expanded on another viable route by advocating for a BRICS payment instrument. This innovative mechanism would harness the strength of a currency basket shared among the member countries. By promoting seamless mutual settlements, this instrument would effectively liberate the nations from the dependency on the US dollar.
“While presenting a BRICS payment instrument based on the currency basket, we can conduct mutual settlements without being reliant on the US dollar,” Babushkin emphasized.
In addition to the financial perspective, Babushkin highlighted the attraction BRICS holds for nations that share common values and aspirations. Commending the efforts of the South African presidency, he underscored the global enthusiasm to join the alliance. With its significant economic footprint, encompassing over one-third of the world’s GDP and a population of around 3 billion, BRICS has undoubtedly emerged as an integral component of the evolving multipolar paradigm.
Affirming Russia’s commitment to BRICS, he reiterated its paramount status in Russian foreign policy since its inception. Highlighting the bloc’s core principles, he underscored its role in fostering fair collaboration rooted in international law and legitimate national interests.
Furthermore, reiterated that BRICS aims to complement rather than challenge the existing international economic and financial institutions. This cooperative approach underscores the alliance’s intent to enhance the global financial architecture harmoniously.