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

Russia’s former Prime Minister Sergey Stepashin has expressed skepticism over the immediate creation of a common BRICS currency, highlighting the challenges involved in merging the currencies of large economies like India and China. Instead, he advocates for increasing the use of national currencies for payments within the bloc.

Former Russian PM Skeptical of Unified BRICS Currency

According to a report by Tass, Stepashin stated that discussing a common BRICS currency would be premature, and that it would be more practical to first increase the use of national currencies for payments within the BRICS economic bloc.

Stepashin highlighted the challenges involved in creating a common currency, especially for large economies like India and China. “It is difficult to imagine that India and China have a common currency. These are too large countries, large economies,” he said. He added:

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’s comments indicate skepticism towards a unified BRICS currency, some members of the bloc, such as Iran, have been pushing for its creation and the increased use of national currencies for payments.

In a recent development, Iran reportedly backed Russia in developing a common currency for the BRICS economic bloc. Moreover, 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.

Do you agree with Stepashin’s assessment? Should BRICS nations focus on strengthening their financial ties through national currencies first, before considering a unified currency? Let us know in the comments section below.

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