A Brics+ reserve currency faces challenges in creation, according to Indian External Affairs Minister Dr Subrahmanyam Jaishankar. Jaishankar highlighted the complexities of aligning fiscal and monetary policies among members, emphasizing the focus on trading in each other’s currencies rather than introducing a new unit for the bloc. The Brics organization, consisting of Brazil, Russia, India, China, and South Africa, with recent additions, has raised discussions about a potential reserve currency but faces skepticism due to the member countries’ preference for their national currencies. Experts argue that the push for a common currency is essentially about promoting national currencies internationally.
As discussions continue within Brics, challenges such as currency availability, exchange rate risk, and international acceptance remain at the forefront. The emphasis remains on enhancing trade using national currencies, reflecting a pragmatic approach over the ambitious idea of a common currency.