BRICS: Goldman Sachs Expert Predicts the Future of the Alliance’s Currency

Former Goldman Sachs chief economist Jim O'Neill, commenting on the potential of a common BRICS currency.The 16th BRICS summit, held in Kazan, Russia, concluded on Thursday and was marked by several important discussions and announcements.

One of the highlights included the unveiling of a prototype BRICS currency, highlighting the group’s interest in reducing dependence on the US dollar in trade by developing a common currency. This step sparked interest in how various sectors in the US might be affected if the BRICS were to abandon the dollar.

Despite this step, O’Neill remains cautious about the future of the currency, questioning whether the alliance can effectively pursue its goals without the support of the US and Europe. He stressed that just as Western powers have limited influence in Asia without the cooperation of countries such as China and India, BRICS members face constraints without unified support.

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O’Neill expressed doubt about the sustainability of the BRICS currency, citing domestic challenges. Although member countries present a united front at such meetings, national interests often take precedence, especially on borders and economic policies. For example, long-standing border tensions between China and India represent a potential obstacle to broader cooperation.

Reflecting on the impact of BRICS, O’Neill noted that the alliance has made limited progress over the past 15 years. He said that if China and India could put aside historical conflicts and work together on important issues, he would reassess the role of BRICS in the global arena. However, he concluded that achieving global dominance with a single currency remained unlikely due to internal disagreements within the bloc.

Kosta Gushterov