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Sergey Stepashin, Russia’s former prime minister, explained that it’s premature to discuss a common BRICS currency, emphasizing the importance of increasing payments in national currencies instead. He cited challenges in creating a common currency, particularly between large economies like India and China. While some BRICS members support a single currency, Stepashin advocates for enhancing financial cooperation using national currencies before considering such a move.
Former Russian PM Skeptical of Unified BRICS Currency
Russia’s former Prime Minister Sergey Stepashin shared his views on the idea of a BRICS common currency, stating that it is premature to discuss such a move, according to a Tass report. Stepashin emphasized that it would be more practical to increase the use of national currencies for payments instead of pursuing a unified currency.
He highlighted the challenges of establishing a shared currency for BRICS nations, especially between large economies like India and China. He opined: “It is difficult to imagine that India and China have a common currency. These are too large countries, large economies.” He emphasized:
The first step we should follow is to make payments in national currencies. It is necessary to ensure smooth operation of the Eurasian Bank and the BRICS Bank and execute transactions there.
He suggested that strengthening financial cooperation through the use of national currencies would better prepare BRICS members for any future consideration of a unified currency. The BRICS economic bloc currently includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).
While Stepashin urged caution, some BRICS members, such as Iran, have been advocating for the creation of a single BRICS currency and increased use of national currencies for payments.
A recent report indicates that Iran backed Russia in developing a common currency for the BRICS economic bloc. Furthermore, China and Russia have been promoting the use of local currencies within BRICS, with recent discussions between Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin focusing on strengthening cooperation in finance and currency.