This year’s BRICS Summit was majorly focussed on two issues - First, admitting new members to the 5-nation organisation, and Second, boosting trade using local currencies of the member nations.
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.