BRICS: Important announcement about the new currency of the union

BRICS is exploring the possibility of creating a new currency for world markets to facilitate international trade between member countries.

The alliance seeks to reduce dependence on the US dollar and increase the importance of the upcoming currency. Amid concerns about the risks associated with holding the U.S. dollar in reserve, the nine-nation bloc has sought to support its home currencies.

Amid concerns stemming from an unmanageable debt of $34.4 trillion, developing countries are turning to hoarding gold as an alternative to cushion the impact on their economies. In particular, the BRICS countries, which are major buyers of gold, have accumulated significant amounts of the precious metal, as reported by the World Gold Council.

Mauricio Lirio, the Brazilian Sherpa, present information on the development of the BRICS currency, confirming the ongoing efforts to create a common currency, the discussion of which is planned for the upcoming summit. Lirio emphasized the alliance's commitment to making progress on the common currency and payment infrastructure under the Russian presidency.

"We are actively pursuing the creation of a new currency," noted Lirio. He further developed his thesis: "Discussions between the member countries are conducted under the Russian presidency, and this remains the central point of the discussions."

Furthermore, the potential introduction of a new BRICS currency or payment system could have a significant impact on the US dollar, causing developing countries to gradually reduce their reliance on it in favor of the proposed alternative.

The upcoming summit scheduled for October in Russia's Kazan region will welcome new member countries, including the United Arab Emirates (UAE), Egypt, Iran and Ethiopia, making it the 16th BRICS summit.